CHAPTER I

INTRODUCTION
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CHAPTER I

INTRODUCTION

“The secret of successful hospitality is to give your customers what they want. And

really, if you think about it from your point of view as a customer, you want

everything: a wide assortment of good-quality merchandise; the lowest possible

prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service;

convenient hours; free parking; a pleasant shopping experience”.

Sam Walton (1918).

Service sector is going at a much faster rate than manufacturing and

agriculture in India. Service quality is very important for the profits of any service

organization.

The hotel industry is one of the largest industries in service sector. Historically

viewed as an industry providing a luxury service valuable to the economy only as a

foreign exchange earner, the industry today contributes directly to employment

around 0.15 million people and indirectly facilitates tourism and commerce. In today's

world the Economic growth of a country depends on the Hospitality industry along

with Industrial growth and Agriculture. Tourism and Hotel sector is a widely

expanding and booming segment in the market, and this industry offers enormous job

prospects to Indians.

One of the most important elements of the hospitality industry is the presence

of the customers. Without the clients, efficient services of the business cannot be

delivered.
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Moreover, the hospitality industry needs the response of the customers as this

will determine the demand pattern of the business. The customer then serves as the

final judge of satisfaction in relation to the quality of the products and services

provided. This pattern shifts the focus on total quality management and quality

assurance.

Customer satisfaction is a key to success in business. It indicates the positive

emotion and experience of customers toward business. Satisfied customers also have

a propensity to repurchase and recommend products to their families and friends. To

achieve customer’s satisfaction, businesses must understand the customer’s needs to

be able to provide their products and services which meet or exceed the customer’s

expectations.

In the hotel industry, most researchers are interested in maximizing customer

satisfaction; satisfied customers tend to return and enhance the hotel’s profit level.

Liu (2000) stated that “Customer satisfaction is a function of service performance

relative to the customer expectation. For this reason, it is most important to

understand how customer expectation is formed in order to identify the factors of

service satisfaction”. Hernon & Whitwan (2001) defined “Customer satisfaction as a

measure of how the customer perceives service delivery”.

As Reisig & Chandek (2001) discussed the fact that different customers have

different expectations, 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.

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If the service performance meets or exceeds customers’ expectations, the

customers will be satisfied. On the other hand, customers are more likely to be

dissatisfied if the service performance is less than what they expected.

Achieving and sustaining a competitive advantage is a critical aspect to

succeed in market place. Providing outstanding service quality is a strategy that is

often utilized by Hoteliers and restaurant marketers. The decision process of a

customer starts when she/he recognizes a need for a specific product or service, in the

case of services offered by a hotelier. This need for a hotel/restaurant service can be

motivated by various reasons including family celebrations, business entertainment or

leisure. Services are “experiences”, and as such are more difficult to evaluate before

their consumption of service or purchase of a product. Many researchers have proved

that if service expectations are met or exceeded, then they result in satisfaction and if

outcomes are below expectations it leads to dissatisfaction. Achieving customer

satisfaction allows the increasing levels of purchase repetition and loyalty.

INDIAN HOTEL INDUSTRY

Hotel industry in India has been an important industry to the Indian Economy.

It is one of the largest foreign exchange earners, to the country and also one of the

largest employers, both directly and indirectly.

The hotel industry in India can be divided into eight segments based on the

norms set by the Ministry of Tourism. They are Five Star Deluxe, Five Star , Four

Star, Three Star, Two Star, Heritage and Unclassified .

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However, the Three Star, Two Star, One Star and Unclassified hotels in India

are spread across the length and breadth of the country and are highly fragmented in

nature, whereas, the upscale , midmarket and heritage categories are highly organized.

The upscale category hotels are primarily present in the metros and the Tier 1 cities

and are now targeting the Tier 2 cities for expansion. The Industry is characterized by

small unorganized players, labour –intensive operations, seasonality, cyclicality and

highly capital intensive nature.

The demand for the hotel rooms is driven by the rise in the number of the

domestic as well as the foreign tourists. The demand for the foreign tourists is driven

by the level of growth in Global GDP, increased business activities of other nations

with India, growing number of tourist destinations, rise in trade and sporting events ,

marketing efforts like “Atithi Devo Bhava’ & “Incredible India”.

Domestic Tourist arrivals are the back bone of Indian hotel Industry as the

number of domestic tourists is more than 100 times as compared to foreign tourists.

Domestic tourists are of two types Leisure travellers and Business travellers. Growth

in leisure travellers is driven by rising personal discretionary income, evolving

lifestyle, growing number of multi earner families, weekend vacation culture, and

improvement in Rail, Air as well as Road connectivity, diverse topography and rich

cultural heritage. Drivers of domestic business travelling are rise in trade and

commerce, increasing geographical spread of companies, growing MICE (Meetings,

Incentives, Conferences, Exhibitions) culture.

In the upscale category, global majors in the hospitality industry like IBIS,

WESTIN, NOVOTEL, RITZ-CARLTON, SOFITEL,PULLMAN, ISTA, ALOFT,

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DUSIT D2, SHAGRRI LA are planning to enter India or expand their existing

operations. Players like LEMON TREE, IBIS PARK, SAROVAR AND GINGER

have identified that there is dearth of quality rooms in the mid market segment across

the country, especially in the Tier 1 and Tier 2 Cities. Approximately, 55 per cent of

the upcoming inventory is expected to be in the mid market and economy segment.

Entry of such organized players is expected to improve the quality of offering s and

bridge the wide gap between mid market and upscale category. (www.prolog.org)

Hotels are an important component of the Tourism product. They contribute in

the overall Tourism experience through the standards of facilities and services offered

by them. The fortunes of the Hotel Industry have always been linked to the prospects

of the Tourism Industry.

The total market size of the Indian Hospitality sector stood at US$117.7

billion and expected to touch US$ 418.9 billion by 2022. The Foreign Direct

Investment (FDI) inflows in hotel and Tourism Sector during April 2000 to July

2013 stood at US$ 6,745.49 million, as per the data released by Department of

Industrial Policy and Promotion (DIPP). Foreign Tourist Arrivals (FTA) during the

month of August 2013 stood at 4.74 lakhs as compared to FTAs of 4.46 lakh during

August 2012, registering a growth of 6.4 percent. Foreign Exchange Earnings (FEE)

during the month of August 2013 were US$ 1.294 billion as compared to FEEs of

US$ 1.306 billion during August 2012 and US$ 1.264 in August 2011.

The number of Tourist availing of the Visa On Arrival (VOA) scheme during

January to August 2013 have recorded a growth of 29.4 percent. During the period, a

total number of 12,176 VOAs have been issued as compared to 9,412 VOAs during

the corresponding period of 2012.

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Major developments and Investments

India is expected to receive nearly half a million medical tourists by 2015,

implying an annual growth of 30 percent. The Country has received 43.06 lakh

Foreign tourists during the period January – August 2013. India is perceived as one of

the fastest growing medical tourism destination. The number of medical tourists

coming to India has registered a growth of 40 percent in the past six months. The

inflow of medical tourists is expected to cross 45 lakh by 2015 from the current level

of 25 lakh. The Taj group has launched the Gateway Hotel IT Express way Chennai,

its first hotel in the City under the Gateway Hotels and Resorts brand.

Government Initiatives

The Government has allowed 100 percent Foreign Direct Investment under the

automatic route in the hotel Industry, according to the consolidated FDI policy,

released by DIPP, Ministry of Commerce and Industry, Government of

India.(www.ibef.org).

The Indian Hospitality Industry over the last three years has been witnessing a

remarkable phase in performance and has continued the same in the former part of the

year 2008/09. One of the key reasons for the increase in demand for hotel rooms in

the country is the boom in the overall economy and substantial growth in sectors like

Information Technology, Telecom, Banking and Finance Insurance, Construction,

Retail and Real Estate.

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The coming years are expected to see a large quantum of new hotel supply

entering the Indian market. A substantial proportion of these hotel are expected to be

branded and of international quality in product and service offerings. Today,

hospitality sector is one of the fastest growing sectors in India. It is expected to grow

at the rate of 8% between 2007 and 2016.

The World Tourism and Travel Council (WTTC) have recently notified India

as one of the fastest growing tourist economies in the world as per the statistics

provided based on the past seven years contribution of Indian Tourism Industry. The

GDP has increased from 958.17 billion to 2190.24 billion and the employment in the

Industry has increased from 21.9 billion to 25.6 billion. The growth in the Indian

Tourism Industry both in terms of Tourist arrival and foreign exchange has also

improved. Indian Tourism Industry is expected to have a growth rate of 8.8% over

the next decade as per WTTC. It also states that India is the highest in the World with

a target to reach a figure of 10 million tourist arrival in the year 2010.

The Contribution in the Gross Domestic product has been estimated to be up

to INR 8,50,000 crores and the Industry will be employing 8.78% of the total

employment which shows that there will be huge demand of skilled and trained

manpower in the Industry. There are some issues like poor infrastructure in terms of

lack good Roads, Rail , Airports and Hotels more over huge Tax Structure of the

Government, lack of qualified and competent staff in the Hospitality service sector

which include both operational and managerial levels, huge gap between supply of

manpower required and the demand for the same exists in the market ( Indian Hotel

Industry Survey 2009 -2010)

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CHENNAI HOTEL INDUSTRY

The Hotel Industry has grown by leaps and bounds in the Chennai City.

Chennai is fast emerging as a centre for hospitality, with as many as Five Luxury

Upscale Hotels having come up in the last few months and many more on the anvil.

These new Hotels will compete with the existing names like ITC Grand Chola, The

Leela and The Westin By Starwood Properties. Chennai has grown tremendously

since the Information Technology boom. Now, to the Metro Rail Network, the City is

poised for further growth in the coming year. Now, with the arrival of high –end

Hotels, Sub-urban areas are witnessing unprecedented growth. The city is also

considered the Gateway to the South, as it is also the entry point for Tourists looking

to Explore Tamil Nadu. The Landscape, Architecture of Chennai and the newly

renovated Chennai International Airport attract more Global Business Travellers and

Foreign Direct Investments. (Source: Times Property, The Times of India, Chennai).

According to The Federation of Hotel & Restaurant Associations of India

fourteenth annual edition of the Indian Hotel Industry Survey, in cooperation with

HVS Hospitality Services, Chennai also witnessed a steady increase in occupancy in

2010/11 and a marginal growth in average rate as well. The City saw a resurgence of

demand from the Information Technology sector as well as the automobile sector,

which witnessed a record year-on-year volume growth of 26.0 per cent in total units

produced due to revival in demand and easy availability of financing. City hotels,

however, continue to cater to demand emanating from traditional sectors like banking

and finance.
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Going forward, as the city expands further, significant investments into hotels

primarily in the budget and mid market segments in the Sriperumbudur and OMR

areas is estimated to result in these areas converting to individual micro markets

within Chennai. OMR is the IT corridor of the city and Sriperumbudur, Oragadam, is

fast becoming an industrial hub with manufacturing and automotive sectors playing a

key role. As these areas continue to witness additions of major companies, HVS

expects hotels to benefit from increased demand from the commercial and extended

stay segments. Additionally, new hotels that are planned with large meeting facilities

are expected to increase demand for MICE (Meeting, Incentives, Conferences,

Exhibitions) as well. A total of 2,500 rooms are expected in the next three years in

the upscale and luxury segments, adding to an existing base of approximately 2,000

rooms in the same segments. The large amount of supply entering the market is bound

to put pressure on occupancy levels in the short to medium term, but the city-wide

average rate is expected to witness growth due to the luxury and upscale products

entering the market.(www.citi.in)

1.1 PURPOSE OF THE STUDY

The purpose of the study is to understand the perceived level of service quality

and satisfaction level of Hotel customers in Chennai city of Tamil Nadu.

1.2 IMPORTANCE OF THE STUDY

This study covers the extent of customer satisfaction regarding various service

dimensions rendered by the Hotel industry in Chennai city. In the prevailing

globalized economic scenario the consumers have ample opportunities to select any

hotel for the purposes like pleasure, pilgrimage, business visit, vacation, office

meeting, and family visit etc.

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In an acutely competitive atmosphere, it is important and challenging for the

hotels to attract the customers to sustain and promote their business. Among the

various aspects that build the rapport with the customers and keep them in their fold,

service quality is much more important than the technical or product quality. Hence

the present study aims at bringing out the various aspects concerned with customer

satisfaction which would surely serve purpose for hospitality services to work out

their service quality with regard to the various dimensions such as tangibles,

reliability, responsiveness, assurance and empathy.

1.3 STATEMENT OF THE PROBLEM

The present study under the title, “A Study on Customer Satisfaction with

reference to Service Quality of Hotels in Chennai City” is an attempt to understand

the various factors influencing the satisfaction level of the customers with regard to

the various dimensions of service quality such as Tangibility, Reliability,

Responsiveness, Assurance and Empathy. A perfect parity among the services offered

by Hoteliers and the services expected by the customers is vital to make the

transaction smooth and hassle-free. So the services offered become an integral part of

the marketing strategy of the firm. In this context it is imperative to make a study on

the quality of service offered by hospitality service in Chennai city and the present

research work has a tremendous relevance to the Hoteliers in formulating their

marketing strategies in this regard.

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1.4 Objectives of the Study

The broad objective of this study is to examine the level of customer

satisfaction and major factors contributing to customer satisfaction in the star hotels.

The Specific objectives of the study were to identify the key areas of customer

satisfaction and service quality to analyze the major factors contributing to customer

satisfaction and to assess customer satisfaction of services and facilities of the star

hotels selected for the study. SERVQUAL model was employed in the assessment of

customer satisfaction of the hotel based on the five dimensions such as Tangibility,

Reliability, Responsiveness and Assurance.

This study has been designed with the following objectives.

1. To trace the growth of the Hospitality Industry with specific reference to the

Hotel Industry

2. To identify the general demographic profile and the service response of the

customers for Hospitality Services in Chennai city.

3. To analyze the gap between customers Expectation and Perception level by

using SERVQUAL measures to improve the service quality and growth of the

Hotel Industry based on the study.

4. To measure the satisfaction level of the customers with regard to the various

dimensions of services offered by the hoteliers

5. To identify the reasons for switch over from existing hotel to the other new

hotels.

6. To suggest suitable measures to augment the Service Quality of the

Hospitality Services.
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1.5 HYPOTHESIS

Based on the extensive literature review, the researcher proposes the following

hypotheses to validate in the current research:

1. There is no significant influence of the Reception or the Front Office factors

on the selection of the hotel in Chennai city among the three different levels

of the hotel industry.

2. There is no significant influence of the facilities available in the Hotel Room

factors on the selection of the hotel in Chennai city among the three different

levels of the Hotel Industry.

3. There is no significant influence of the Restaurant Service factors on the

selection of the Hotels in Chennai city among the three different levels of the

Hotel Industry.

4. There is no significant influence of the other service factors on the selection

of the hotel in Chennai city among the three different levels of the hotel

industry.

5. The level of the Customer Satisfaction among Five Star, Middle level and

Low levels hotel does not differ significantly.

6. There is no significant gap between the Expectation and the Perception level

of the customers by using SERVQUAL measures of the service quality.

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1.6 METHODOLOGY

To test the above hypotheses and to meet the objectives of the study, the

following methodology has been adopted. This study is mainly based on the both

primary and secondary data.

1.6.1 Sampling design

The universe for the study encompasses only of the customers in Chennai city.

The sample, customers were picked from the sample frame of the hotels’ list taken

from Internet rating by top business people. The sample was then grouped as top Five

Star hotels, Middle level hotels and Non-star hotels . In each cluster, a sample of 125

customers, were approached at the convenience of the researcher.

Questionnaire method of data collection has been adopted to collect

information. The personal details of the respondents were kept confidential. The

questionnaire was distributed to 600 hotel customers. The researcher received back

549 completed questionnaires. However after editing for incomplete or unsuitable

responses a rounded number of 500 respondents have been chosen for the study.

Hence the exact sample of the study is confined to 500. The information received

through questionnaires formed the core of the study for the further statistical analysis.

1.6.2 Area of the Study

India has become the hub for the Information Technology Companies and as

Purushottaman (2009) says “India has propelled to the top of the world in both

Information Technology (IT) and Information Technologies Enabled Services Sector

(ITES)”. Many Multi National Corporation across all around the world have opened

their operations throughout India especially in South India.

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Initially, Bengaluru served as the Indian operations Head Office for many

companies but then Chennai, the capital of Tamilnadu State has become the business

hub for the major Multi National Corporation. This is due to the involvement of many

foreigners coming to India for business development. As a part of their business

development, business travels are frequent and with the Hospitality Sector has also

developed with more profitability.

Nearly 50% of occupancy in all the hotels in major cities of Tamilnadu like

Chennai, Madurai, Coimbatore, Trichy, Tuticorin, Tirunelveli is by the business

travellers. The Researchers choice for the present study is Chennai based hotels.

1.6.3 Period of the Study

The study covers the recent three calendar years from 2010 to 2012, for the

analysis of the Secondary Data relating to the various aspects of History and the

Marketing Strategy of the Hotel Industry at Chennai. The Primary Data relating to the

opinion of the customers of hotel industry in Chennai, have been collected during

the last year of the study 2012-2013.

1.6.4 Research design

The Researcher has used for convenience the Descriptive Research Design to

study the Service Quality, Awareness Level, Satisfaction Level of the customers and

its key dimensions in hotel industry sector. The Questionnaire is divided into four

sections. In the first part the information related to the different socio-economic and

demographic criteria from the Customers were collected.

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In the second, third and the fourth parts, the Respondents were asked to

evaluate the parameters on expectations and perceptions towards Service Quality,

Awareness Level, General Customer Opinion, Satisfaction Level relevant to the Hotel

industry on a 5 point scale like (“5 = Highest or Very good, 4 = High or good, 3 =

Moderate or Neutral, 2 = Low or satisfactory and 1= Lowest or very bad”) .

1.6.5 Data Collection

The study is mainly based on the Primary Data collected from the Field

Survey using a pre-tested Questionnaire. The Secondary Data were collected from the

various sources such as Journals, Magazines, Publications and Various Websites

including the official websites of the Five stars, Middle level and the Low level

Hotels. The published Research reports and the Market Studies also helped the

researcher in the course of the Study. The further information collected through

informal discussion with selected Hotel Managers and Employees before and after the

study has also been processed and used in the study.

1.6.6 Data Evaluation

The data collected were not instantly accepted as they contained lots of

unnecessary information and over or under emphasized facts. Therefore only relevant

data have been included in the thesis, which help in achieving the objectives of the

thesis.

1.6.7 Statistical tools used

The collected data have been consolidated, tabulated and analyzed by using

the relevant statistical tools like Frequency Distribution, Standard Deviation, Factor
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Analysis, Correlation, One Way ANOVA, Perceptual Mapping, Chi-square test and

Correlation. The SPSS 16 package was utilized for analyzing the Data. The

interpretation of the Study is done by using Tables, Graphs and Charts to give

meaningful results.

1.6.8 Pilot Study

The Questionnaire was given to some research experts for a critical view with

regard to its content, format and sequence and their feedback have been incorporated.

Then the Questionnaire was administered to 20 customers for Pre-testing. The Pre-

testing has been done to ensure reliability and validity of the questionnaire. It has

been done to check whether the instrument has been correctly framed in an

understandable manner. Taking into consideration of the suggestions of the selected

sample customers, necessary modifications and changes have been incorporated in the

Questionnaire after the Pilot Study. The Respondents included in the pilot Study have

not been included as samples for the Final Study.

1.6.9 Level of Significance

After examining the construct validity of the instrument, the Data have been

collected, tabulated, processed and analyzed with reference to each of the specific

objectives, with the help of the appropriate tools of analysis. All tests have been

conducted for 10% Level and 5% Level of significance. The Analysis has been made

to meet the purpose of each of the specific objectives and test the hypotheses.
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1.6.8 Reliability

‘Reliability’ refers to the consistency or repeatability of the Questionnaire for

further analysis. The reliability of the questions was empirically examined in order to

understand the coherence in the responses made. Reliability of the scales was ensured

with Cronbach’s alpha coefficient. The coefficient varies between the values 0 to 1. If

the score is closer to the value ‘1’, the internal consistency in the Questionnaire is

perfect and if the score is closer to ‘0’, there is poor internal consistency among the

questions in the scale constructed.

Cronbach’s alpha measures how well a set of items (or variables) measures a

single one-dimensional latent construct.

Cronbach’s alpha can be written as a function of the number of test items and

the average inter-correlation among the items.

Cronbach’s alpha can be interpreted as the percent of variance of the observed

scale that would explain hypothetical true scale composed of all possible items in the

universe. Alternatively, it can be interpreted as the correlation of the observed scale

with all possible other scales measuring the same thing and using the same number of

items.

The Cronbach alpha score for the attributes that influences hotel industry and

services was calculated to be 0.806 which is greater than 0.7 and it can be seen that

the factors chosen are quite good and relevant. Thus, the internal consistency of the

Questionnaire is good enough to proceed for further data collection and analysis.
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1.7 CONCEPT USED

SERVQUAL Model

The SERVQUAL Model was first introduced by Parasuraman and colleagues

in 1985 in the United States. Presented by scientist’s model, it identifies the reasons

for differences between customer’s perceptions and expectations. Originally the

model considered 10 aspects of service quality: responsiveness, competence, access,

courtesy, communication, reliability, credibility, security, 10 understanding or

knowing the customer and tangibles. It measures the gap between customer

expectations and experience. (Wikipedia.org, 2010) The model has become the most

popular tool for measuring customer’s satisfaction level in past decades. Parasuraman,

Zeitham and Berry (1988) argue that service a supplier needs to know exactly what a

customer expects, set proper quality standards, support employees in delivering

quality service and never over-promise.

The simplified version, RATER, presented in 1992 by Zeitham and colleagues

(Wikipedia.org, 2010), however, is simple and useful for qualitatively assessing

customer’s service experience and it has been widely used by service delivery

organizations. The RATER model is efficient for organizations in bridging the gap

between expected and perceived service. This model considers five aspects of service

quality: Reliability, assurance, tangibles, empathy and responsiveness. (The RATER

Model – Service Quality Dimensions, 2010). These dimensions are supporting 22

questions which are designed within the SERVQUAL satisfaction measuring tool.

The aim is to test the key aspects of organization’s skills, capabilities and resources.
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The SERVQUAL model as a measuring tool “remains the most complete

attempt to conceptualize and measure service quality”. (Nyeck, Morales, Ladhari,

Pons, 2002) The ability of researchers to examine numerous service industries, such

as banking, healthcare, financial services and education remains the best benefit of the

model.

Parasuraman stresses that the model is more useful when used with other

service quality models. The model also defines many differences between system

components and perceptions, creating a framework for active management of service

quality. SERVQUAL model is also known as a GAP 5 model; the gap model defines

many differences between system components and perceptions, it also creates a

framework for active management of service quality (Parasuraman, Zeithaml, Berry,

1985)

SERVQUAL

SERVQUAL refers to meeting on exceeding customer expectations by the

store. Service quality is an outcome of an evaluation process, wherein the consumer

compares his/her expectations with the service he/she has received.

Customer Satisfaction

It is the outcome of a cognitive and effective evaluation, where some standard

expectation is compared to the actually perceived performance. If the perceived

performance is less than expected, customers will be dissatisfied. On the other hand,

if the perceived performance exceeds expectations, customers will be satisfied.

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1.7.1 Components of customer satisfaction

Customer satisfaction has been depicted as the identification and management

of moment of truth. Zemice and Albrecht (2005), who espouses the philosophy of

satisfaction, identify three components of truth namely

The service strategy

Service strategy is the decision about a service that will provide it with a

unique identity visa- Vis competition. It’s also a means for creating shared value

through the organization unifying purpose for management and service priorities for

the staff members. To foster customer satisfaction orientation, a service strategy

should be customer centered, enabling the business to meet the needs, expectations

and motivation of target market.

The system

The system represents the manner in which a service is being delivered. A

customer satisfaction system should be designed to provide a maximum level of ease

and convenience to customers. This could be achieved by conducting a task analysis

that identifies the service and enables the staff to rehearse the performance required to

satisfy the customer.

The people (employees)

Employees are very crucial component of the moment of truth. Employees

determine the quality of the service to be delivered. The quality of contact and service

given, attitude and appearance of the employees are crucial.

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1.8 LIMITATIONS OF THE STUDY

As the Study is made with Primary and Secondary research, there are certain

limitations to the Study to be noticed.

1. Main limitation to the study was the scarcity of time to conduct it, which

affected the processing and analyzing of the data.

2. Desired number of respondents from all the hotel industry could not be

included.

3. The study is confined only to customers’ satisfaction of the services rendered

by the hotel industry and so the other aspects of hotel management do not form

a part of the present study.

4. Due to time constraint the researcher could cover only a limited period of study

i.e. 2010-2012.

5. The Sample size is limited to 500 customers only. The sample size may not

adequately represent the whole market.

6. It is difficult to know whether all the customers of hotel industry gave accurate

information; some respondents tend to give misleading information. As it is a

Study based on the perceptions, there is a tendency to alter their perceptions

over the varying periods of time.

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1.9 CHAPTER SCHEME

The present study on customer satisfaction with reference to service quality

has been presented in the following manner. The study have been detailed in the six

chapters as follows.

Chapter I: Introduction & Design of the Study

This Chapter presents an introduction to Hotel Industry, the Purpose of the

Study, the Importance of the Study, the Scope of the Study, Statement of the Problem,

the Objectives of the Study, the Hypothesis of the study, the Research Methodology

(Sampling Design, Area of the Study, Period of the Study, Research Design, Data

Collection, Data Evaluation, Statistical Tools used, Pilot Study, Reliability, (Level of

significance), and the Limitations of the Study.

Chapter II Review of Literature.

This Chapter presents the review of previous literature in the Hotel Industry.

Chapter III Theoretical Perspective of Indian hotel industry Profile.

This Chapter discusses the theoretical perspective of Indian Hotel Industry in

general.

Chapter IV Data analysis I

This Chapter illustrated the customer satisfaction of sample respondents in the

survey. The classification of demographic characteristics of customers is analyzed in

detail in this chapter. The SERVQUAL Model was used to assess the customers

expectations and their perceptions of services rendered by the Hotels in Chennai city
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and also to measure the service quality by evaluating the gap between the expected

service and perceived service of hotels.

This Chapter presents analysis of the data with the results of the data which

were analyzed and presented in Tables and Inferences drawn are mentioned.

Chapter V Data analysis II

This Chapter begins with a brief description of the various factors influencing

on the selection of hotel among the three different levels of the Hotel Industry. This

is followed by the analysis of the results of data collected through issue of

questionnaire. In addition to that, this Chapter provides an insight into measurement

of Service Quality and Customer Satisfaction. The Analysis of the data, results of the

data analyzed which were presented in tables and inferences drawn are mentioned.

Chapter VI Summary of Findings, Suggestions and Conclusion.

The last Chapter gives summary of the main findings of the study, suggestions

and scope for further research in this area.