“ LEVEL OF GUEST SATISFACTION IN COSTA ABRIL RESORT IN MONTALBAN

RIZAL”

CHIU, DANIEL JR.C.

LAMSEN, JHENVERSON J.

WENCESLAO, JOSEPH

ARAZA, CAMILLE ALYANNA

COLLEGE DEPARTMENT

OUR LADY OF PERPETUAL SUCCOR COLLEGE

MARIKINA CITY

APRIL 2019
 CHAPTER 1

INTRODUCTION

Nowadays, people are considering resorts and lodging establishments as part of their

important memories in life. Weddings, birthdays, anniversaries and a like are some of the

celebrations being held in a resort establishment especially when they cater and provide function

halls and facilities for these events.

And Summer Season in Montalban, Rizal is busy especially for the resort’s out there.

Many guests from different places will go to a resort to have fun with their family, friends and

love ones.

This research will focus mainly on the satisfaction level of guests in Costa Abril Resort in

Montalban Rizal. But, before that, what the researchers would like to discuss first is the star

ratings of resorts here in the Philippines.

In selecting resort and lodging establishments there are some consideration being done

before a guest would patronize or avail accommodation. In determining the ratings, the future

guests/customers will understand what could be the things that they can expect and what are the

things that could satisfy them inside the selected resort.

The main goal for the researchers is to know the satisfaction level of every guests of

Costa Abril Resort in Montalban Rizal.

Resort

Any place or places with pleasant environment and atmosphere conducive to comfort,

healthful relaxation and rest, offering food, sleeping accommodation and recreational facilities to

the public for free.

Classification of Resort depending on the following: Location, Activity Offered,

Ownership/ Lodging properties. (Definition per DOT Rules on Accreditation)

Location Activity Offered Ownership/ Lodging

Properties

Inland Beach Diving Resort Resort Hotel

Island Fishing Resort Second- Home Development

Lakeside Health and Spa Timeshare Ownership

Farm Gold Resort

Orchard Ski Resort

Mountain Gaming Resort

Spring Theme Park

(Slideshare: Planning resort planning)

1.1 BACKGROUND OF THE STUDY

Montalban Rizal or Rodriguez is a first-class, urban municipality in the province of Rizal,

Philippines. It is the northernmost town in the province and comes after San Mateo, Rizal, and

Quezon City coming from Metro Manila. The town is located on the slopes of the Sierra Madre

mountain range and features many resorts; it is the largest town in Rizal province with an area of
312.70 km². According to the 2015 census, it has a population of 369,222 people, making it the

most populous municipality in the country.

It borders San Mateo, Rizal and Antipolo City, Rizal on the south, Norzagaray, Bulacan and San

Jose Del Monte, Bulacan on the north, Quezon City on the west and General Nakar, Quezon on

the east.

Montalban, a common name for the municipality up to the present, was its official name

from its founding in 1909 until 1982 when the Batasang Pambansa officially renamed it

Rodriguez in honor of Eulogio Rodriguez, Sr., a native of the municipality who served as Senate

President. Rodriguez is one of the richest municipalities in the Philippines, ranking third in 2016

with an income of ₱ 691 million.

And Costa Abril Resort is one of the highly recommended resort in Montalban, Rizal. It

has nice facilities, big and luxurious ball room and a good location for a resort. It is located at

Dao Street which is the home for all the resort in that said location. Boasting its 7 spacious

swimming pools other says that Costa Abril Resort is a perfect place to relax, unwind and simply

have fun.

Costa Abril Resort has many competitors including CJ Resort, Blue Water Resort and

Tres Maria’s but still, Costa Abril Resort is considered as one of the best. It has different kind of

swimming pools including a wave pool, beach pool, adult pool, lap pool, kiddie pool, giant slide,

ballroom and villa with private pool. They have 300 square meter wave pool and a thrilling and

breathtaking giant slide, sprawling 4 floors from the ground with two 360 degree loops. They

also have beautiful scenic view of the landscape and ambiance.

 But even though it is highly recommended by locals in Montalban, Rizal, Costa Abril

Resort has flaws. And one of these is the staffs. Some people who visited the resort says that the

staffs is rude, lazy and unprofessional. One of the guest who experience it says, “they need to

work in training the staff. there should always be a supervisor around, one who knows how to

take care of the guest. The staff should have the same goal everyday which is to provide

excellent customer service”.

1.2 THEORETICAL FRAMEWORK

Thomassen’s Customer Satisfaction Model

According to Thomassen, both the so-called value proposition and other influencers have

an impact on final customer satisfaction. In his satisfaction model (Fig. 1), Thomassen shows

that word-of-mouth, personal needs, past experiences, and marketing and public relations

determine customers’ needs and expectations. These factors are compared to their

experiences, and this comparison between expectations and experiences determines a

customer’s satisfaction level.

1.3 STATEMENT OF THE PROBLEM

The main purpose of this study is to determine the level of Satisfaction of guest in Costa

Abril Resort. This will also help to understand if every guest has an impact in the resort

industry. Specifically, it seeks to answer the following questions :

1. What is the demographic profile of the respondents in terms of :

a. Age

b. Gender

c. Educational attainment

d. Number of visit

e. Purpose of visit/stay

2. What is the level of guest satisfaction in terms of:

a. Service

b. Product

c. Facilities

d. Staff and Management

3. What is the recommendation of guest that will contribute to Costa Abril Resort

1.4 OBJECTIVES OF THE STUDY

The objectives of this research is to gather information about Costa Abril’s guest level of

satisfaction to get a clear understanding of the quality of the resorts different aspects of

service.

The research objectives of the study are as follow:

  To identify the demographic profile of the respondents.

 To identify the level of guest satisfaction in terms of

a. Service

b. Product

c. Facilities

d. Staff and Management

 To gather information from the millennial guest of Costa Abril Resort and to help the

management to identify their short comings.

1.5 SIGNIFICANCE OF THE STUDY

The management of Costa Abril Resort is the first to receive and benefit from this study.

It will help them to identify if their guest is satisfied with the service they are giving. This

will help them to identify their short comings and to help them improved their service.

Future Researchers. This study will provide broad ideas and knowledge to gather

information about the resort. This will also help other researchers; they can use this study as

a reference in the future.

Other resorts owner. This study will help them to improved their service and give them a

broad information on how to deal with their future guest.

1.6 SCOPE AND LIMITATIONS

The Scope of this study will focus on the level of guest satisfaction in Costa Abril Resort in

Montalban, Rizal. The target respondents will be the guest ages 18 and above of Costa Abril

Resort in Montalban, Rizal.

This study is limited on the measurement of level of guest satisfaction in Costa Abril Resort

in Montalban, Rizal. According to the management of the resort their peak season starts at the

end of April which is vacation for most of the students and the perfect time for gathering and

celebrations.
(Map of the Philipines)
 (Map of Rizal)

(Map of Costa Abril Resort)

1.7 DEFINITION OF TERMS

Accommodation - Something supplied for convenience or to satisfy a need.

Customer Satisfaction – A measurement of how the service supplied by the management meet

or surpasses customer expectations.

Expectation - The product of several factors or external influences.

Service quality – is the value of a service to customers. This is inherently subjective as it is

driven by the needs, expectations and perceptions of customers.

Service – An intangible product of a food service industry, most often related to how restaurant

treat their customers.

Word-of- mouth - Given or done by people talking about something or telling people about

something.

Intangible - Unable to be touched or grasped; not having a physical presence.

Resort - A place that is a popular destination for vacations or recreation, or which is frequented

for a particular purpose.

Service product - is when a business offers a service and a product or a good together as its practice.

Tangibility - capable of being touched; discernible by the touch; material or substantial. real or

actual, rather than imaginary or visionary.

Reliability - the quality of being trustworthy or of performing consistently well.

 CHAPTER 2

REVIEW OF RELATED LITERATURE

FOREIGN

2.1 CUSTOMER SATISFACTION

According to Hoyer and MacInnis (2010, p.279), Customer Satisfaction is the feeling that

results when consumers make a positive evaluation or feel happy with their decision.
 According to Peter and Olson (2010, p.387), Customer satisfaction is a critical concept in

marketing though and customer research. If a customer is satisfied with a product, service, or

brand, they will be more likely to continue to purchase it and tell others about their favorable

experiences with it. If they are dissatisfied, they will more likely switch products or brands and

complain to manufactures, retailers, and other costumers.

According to Kotler and Armstrong (2004, p.19), Customer Satisfaction is the extent to

which product’s perceived performance matches a buyer’s expectations. Customer satisfaction

depends on the product’s perceived performance relative to a buyer’s expectations. According to

Bowo, Hoyyi and Mukid(2013), customer satisfaction is a post-purchase evaluation of

alternatives selected where at least give the results (outcomes) equal or exceed consumer

expectations.

According to Siddiqi (2011), Customer Satisfaction is one of the most important

outcomes in the marketing literature. It serves to link processes culminating purchase and

consumption with post purchase phenomena such as attitude change, repeat purchase, and brand

loyalty.

From the explanation above, Customer Satisfaction is the feeling that results when the

product’s perceived performance meet the customer’s expectations. Customer satisfaction is

important to business success because 16 satisfied customers are willing to pay higher prices,

particularly if they buy the product repeatedly. The customers are also more likely to remain

customers, be brand loyal, and committed to the product.

2.2 CUSTOMER LOYALTY

 According to Neal, Quester and Hawkins (2004, p.185), Customer Loyalty is where a

customer has an emotional feeling to the brand or product and keep purchasing.

According to Griffin (2003, p.4), Customer loyalty is non random purchase expressed

over time by some decisions making unit.

From the description above, Customer loyalty is the psychological and behavior from the

customer to be loyal toward the product or service that sell by the company and keep purchasing

in the future.

2.3 CHARACTERISTIC OF CUSTOMER LOYALTY

Characteristics of Customer Loyalty According to Heruwasto and Fatma (2011), there are

3 indicators to see the customer loyalty:

1) Frequency of product use - The loyal customer will use the product with the high

intensity

2) Repeat purchase - The loyal customer will purchase the same product continuously

3) Words of mouth - The loyal customer will tell the other people to buy the products.

They will make the efficiency to do the promotion of the products.

2.4 SERVICE QUALITY

According to Lupioyadi (2008, p.181), Service quality is a factor in determining the

success and quality of the company where the company's ability to provide quality service to

consumers and as a strategy to defend themselves and achieve success in the face of competition.
 According to Nasution (2004, p.47), Service quality is the expected level of excellence

and control over the level of excellence to meet customer desires.

From the description above, Service quality is defines as the difference between

customer’s expectation for service output to the service input and the perception of the service

received. Therefore, Customer’s expectation serves as a foundation for evaluating service

received because when performance exceed expectation , it means that the quality is high and

when performance is low it means performance does not meet their expectation.

2.5 SERVICE THEORY

“A service is an intangible product involving a deed, performance, or an effort that

cannot be physically possessed. Dominant component is intangible” (Service Marketing, 2007).

Services are different from products because of their built-in characteristics which make it

different from products. These characteristics include intangibility, perishability and

inseparability. These characteristics make service not only different from physical goods, but

they also require a greater deal of expertise in delivering them because the results of service

offerings are mostly prompt and the feedback is immediately. Successfully delivering services

depends upon how effectively a business promotes its service as there are higher chances of post-

purchase dissonance in service offerings, if they do not meet the requirements of the customers.

Sometimes services are offered as part of a package including a physical product. In that

situation the quality of delivering the service depends upon the ability of the physical product.

Apart from that each service experience can hardly be equal which makes services more

heterogeneous in nature (Savitt, 1986).

2.6 ELEMENT OF SERVICE

 The customer satisfaction is psychological state, which definitely needs a consistent

measurement and analyses (Carrol, Reichheld, 1992). The customer satisfaction is directly

associated with quality of service. The quality constitutes Value, Time, Access, Environment and

commitment to the customer. (Carrol, Reichheld, 1992). This direct association of service to

customers has created a shift in the approach. Now, the approach has been that satisfy existing

customers by providing the best service quality rather imploring capital over attracting the

prospect customers (Buckinx, Geert, Van den 2007).

2.7 QUALITY IN CUSTOMER SERVICE

A number of studies have been conducted in-order to measure the quality standards for

the service industry. However, the service quality model as provided by Kay, Tore and Gronous

has been given a priority for the instant results. For the assessment of customer satisfaction to the

quality of service, the model bases the customer recent experiences in comparison of the

customers’ perception or expectations (Storbacka, Strandvik, Gronroos, 1994).

The customer satisfaction is the right standard for the quality of service. A quality of

service determines the business relationship and obviously the customer retention, as well. If the

customer is dissatisfied with the service quality then it may end with adverse behaviours, which

are customer may move away or no longer needs the service or may end with weaker

relationship. Thus it is pivotal that in-order to retain customer loyalty then quality focus service

needs consistent measurement and follow-up.

2.8 CUSTOMER SATISFATION THEORIES

 Customer satisfaction means that the customer is satisfied with a product or service

which meets the customer’s needs, expectations and wants (Customer Service and Satisfaction,

2007). One of the fastest growing segments in marketing research is the study of customer

satisfaction (Dutka, 1994).

Customer loyalties are created when a customer is satisfied and once a business has

established customer loyalties, it becomes one of the important components of sustainable and

profitable growth.

Customer satisfaction is strewn from customers’ expectations which pass through three

different stages before rendering satisfaction. At level I of expectation, expectations are simple

and take the form of assumptions. Level II expectations are higher than level I expectations and

customers require satisfaction through service quality meeting some requirements or

specifications.

The levels III of expectations require organizations to delight their customers and

produce something which attract customers towards its services and products. (Service

Marketing, 2007). At this third stage customer satisfaction turns a customer into a loyal customer

and provides opportunities for organizations to forge long- term relationships with their

customers.

2.9 FUNCTIONALITIES OF CUSTOMER SATISFACTION

The functionality of customer satisfaction in the business world is that how effectively

the services/goods meet the customers’ expectations. Therefore we can see across marketing

world that each businesses success story relies on “Customer Satisfaction”. Thus the customer
satisfaction has become the key element of business strategy in today’s market place (Buchanan,

Gilles, 1990).

Although the customer satisfaction varies from an individual to individual, however

certain recommend standards can be opted in-order to mitigate positively the popular perception.

The common tool to opt the level of customer satisfaction is survey or collection of

primary data where customer is asked to evaluate the open ended and close ended statements in

accordance with the customers own perception. Thence the performance of the service/goods

becomes contingent of that certain level of Customer Satisfaction.

Building a superior and sustainable service culture is a vital and multifaceted project that

can deliver positive social consequences and long-lasting commercial results and helps you stand

out of the competition. In the hotel industry which is mostly dependent on services, it is very

important that the service delivery is prompt and accurate. It is very important that the hospitality

industry makes its expectations clear to its employees, as the service is delivered through them

and creates a culture of service within the hotels and resorts.

2.10 SERVICE OF RESORTS

Accommodation

One historical aspect of hospitality is the obligation to treat strangers with dignity, to feed

them and provide them drink, and to protect their safety. When friends come to your home, you

naturally want them to feel comfortable. You go out of your way to greet, serve and entertain

your guests. And, when you visit someone else’s home, perhaps you are treated to food, drink
and maybe even a comfortable bed. The amenities or features that add material comfort,

convenience, or smoothness to social interactions, help define the behavior known as hospitality.

This behavior is also a service. And service is the most important product of the

hospitality industry. Customer’s expectations of service and quality vary based on appearance.

Guests perceive good service on the basis of their own expectations of the hospitality staff. Good

service is often equated with the number of amenities, the degree of personal attention or the

speed of service delivery. Guests measure the quality of service by comparing the services

received with what they expected to receive, given the type of establishment offering the service.

Fulfilling the needs and expectations of guests is a key to satisfy them. At one time, hotels and

resorts differed distinctly by the services they offered. Recognizing that all guests do not expect

the same services nor have the same amount to spend on lodging, the hotel industry offered a

variety of services at different prices aimed at particular markets (groups whose members have

similar expectations and budgets).

They are not all known by the same name and does not offer the same services but there

is one thing they all have in common extending the spirit of hospitality to overnight guests. Over

the years, a wide range of facilities have been developed to meet travelers’ accommodation

needs. Although it can be found in many shapes and sizes, these facilities have commonly been

grouped under the umbrella term lodging.

Accommodation provides home away from home. It creates temporary living quarters for

guests through a variety of sources which includes amenities that contribute to guest comfort. If

possible room inspections should be made to ensure guest comfort. Accommodation implies that

procedures are designed around the customer rather than around the restaurant or its employees.
As consumers are consistently demanding more from their lodging experience, the challenge to

hotel operators is to excel in consistently high quality service that build customer loyalty.

These commitments to excellence mal also involve product differentiation strategies

involving imaginative experiences. For example, Sun International’s Atlantis Paradise Island

resort in the Bahamas has a slogan ―Blow away the customer,‖ as in exceed the customer’s

wildest expectations. Atlantis boast the world’s largest open-air aquarium and an encased water

slide that take riders safely through a shark infested lagoon. Due to the wide number of options

provided by the travel and accommodation industry, most individuals would typically find it

difficult to opt for the best holiday destination. Facilities and amenities of a particular hotel or

resort must be carefully considered, aside from, of course, the personal preference and budget of

the traveler.

LOCAL

Travelling is a significant part of the hospitality industry worldwide and its employees

play a key role in delivering the service product, its customers. All of the service businesses are

trying their best to improve their service quality in order to make customers satisfied with their

services, especially the hospitality industry. Inns are the outgrowth of man’s desire to travel for

pleasure or for business.

When man had to travel, he felt a great need for dining and lodging out of his own home

and town (Chauhan, 1981). Hotels/Inns and Resorts are providing room accommodation, food

and beverages and recreational facilities. Hotels/Inns and Resorts have been established in the
different parts of the country especially in cities and some major towns Today, in San Mateo

Rizal the potential growth and industrialization and its program to promote local and foreign

tourism led to the growth of the hotels/inns and resorts that are serving the province.

At present, Resorts in San Mateo Rizal have increased their competition and now instead

of having only a nice room to draw customer in, they offer-high quality staff as an amenity as

well. Guest satisfaction is the highest priority for the owners and managers competing with

hundreds of others, and personal service is at the top of the travelers and list of the most

important things when considering a hotels/inns and resorts to stay in (Wipoosattaya, 2001).

In the hotels/inns and resorts, the personnel are ranging from the top management (i. e

housekeeping, restaurant, front office and kitchen). The personnel are considered a supporting

factor in determining customer satisfaction when deciding to return, to recommend the

hotels/inns and resorts, or in demonstrating loyalty to a particular hotels/inn and resorts

(Kandampully and Suhartanto, 2000).

In addition, Watt (2007), stated that the important function of the hotels/inn and resorts is

the front office because customer deals with it as the center of the hotels/inns and resorts. They

provide assistance to guest, fulfil their needs, and meet their wants. The study of Suwannakun

and Siriteerajad (2002) emphasized that the aspects of practices regarding the level of customer

satisfaction.

As mention above, Service quality was determined as the subjective comparison that

customer make between their expectation about the service and the perception of the way the

service has been run. Parasuraman et. Al (1985) defined service quality as function of the

differences between expectations and performance along ten major dimensions. In later research,
Parasuraman et. Al (1988) revised and defined the service quality in terms of five dimension;

Tangibility, reliability, responsiveness, assurance, and empathy. For example, Min and Min

(1997) presented the idea that hotels/inns and resorts services have attributes that are considered

most important particularly in forming the following impression of service quality such as;

quality; tangibility; In the Mauritius Hotels (Juwaheer and Ross, 2003), assurance factors and

such as security and safety of guest determined by the first , secondly; reliability factors and such

as hotels perform task that have been promised to guest on resolving problems encountered by

the guests. Juwaheer and Ross found that by focusing on these factors, hotels in Mauritius would

be able to achieve high levels of satisfaction.

As Reisig and Chandek (2001) discussed the expectation is formed in order to identify

the factors of service satisfaction, based on their knowledge of a product or service. This can be

implied that a customer may estimate what the service performance will be or may think what

the performance ought to be. If the service performance meets or exceeds customers’

expectation, the customers are more likely to be dissatisfied. On the other hand, customers are

more likely if the service performance is less than what they have expected.

Customer satisfaction is an important topic for both researchers and managers, because a

high level of customer satisfaction leads to an increase in repeat patronage among current

customers and aids customer recruitment by enhancing an organization marker reputation. Being

able to successfully judge customer’s satisfaction levels and to apply that knowledge are critical

starting points to establishing and maintaining long term customer retention and long term

competitiveness (Yuskel and Yuskel, 2002).

 Customer satisfaction brings many benefits. Satisfaction is an “overall customer attitude

towards a service provider”, or an emotional reaction to the difference between what customers

anticipate and what they receive ( Zineldrin, 2000), regarding the fulfilment of some need, goal

or desire. Kano, Bentler and Li-tze (1984) developed a model to categorize the attributes of a

product or service based on how well they are able to satisfy customer needs.
 CHAPTER 3

METHODOLOGY

3.1 RESEARCH DESIGN

This study will use descriptive type method to determine the level of guest satisfaction

from the guest of Costa Abril Resort in Montalban, Rizal. This method will describe data and

frequencies, average and other statistical calculation that will explain the findings.

3.2 RESEACH INSTRUMENT

This research will use quantitative questionnaires/survey sheet to be given to the respondents

chosen by the researchers on the field. This method is the most effective tool to gather the

insights and experiences of the guests, both good and bad. This will also serve as the basis in
which the researchers will see on how the guests of Costa Abril Resort are being satisfied. The

Questionnaire’s portions will be designed to know the thoughts of the respondents towards their

experiences inside the resort in both and good aspects, if their satisfactions are being met or not.

3.3 DATA COLLECTION

The researchers will follow the following steps in gathering the data needed in the study. The
first action taken in gathering information was to make or construct a concrete and easy to
understand questionnaire. Second the researchers will acquire the population of the respondents
by using purposive sampling. Then, we will conduct the study in Costa Abril Resort in the month
of July-June 2019.

3.4 STATISTICAL TREATMENT OF DATA

The researchers will use frequency and weighted mean to interpret and analyzed the data
that we will get in our surveys.

PERCENTAGE AND FREQUENCY:

Percentage and frequency will be use for the demographic profile of the respondents. It is
solved by this formula.

%=f/Nx100
Where:

% = Percentage
F = Frequency
N = total number of respondents
100 = constant to get the exact percentage

WEIGHTED MEAN:
 For the researchers to answer statement of the problem number 2, weighted mean will be
use. It is an average computed by giving different weights to some of the individual values. It
will be solved by this formula:

Where:
x̃ = weighted mean
wi = corresponding weight
xi = the value of any particular observation or measurement