Service Quality and Guests Behavioural

International Journal of Management
INTERNATIONAL (IJM), ISSN OF

JOURNAL 0976 MANAGEMENT
– 6502(Print), ISSN 0976(IJM)
- 6510(Online),
Volume 6, Issue 1, January (2015), pp. 475-483 © IAEME
ISSN 0976-6502 (Print)

ISSN 0976-6510 (Online)
IJM
Volume 6, Issue 1, January (2015), pp. 475-483
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SERVICE QUALITY AND GUESTS BEHAVIOURAL

INTENTIONS: A STUDY IN THE KODAIKANAL STAR
HOTELS
Dr. L. Asid Ahamed

Assistant Professor of Business Administration, Jamal Mohamed College, Trichy
Dr. R. Khader Mohideen

Head, Jamal Institute of Management, Jamal Mohamed College (Autonomous), Trichy
ABSTRACT
The purpose of this paper is to identify the best predictor among the dimensions of service
quality in the Kodaikanal Star Hotels as perceived by the guests in terms of perceived value, guest’s
overall satisfaction and behavioural intention. The study reviews a proposed model of service quality
and its relationship with perceived value, guest’s satisfaction and behavioural intention. Service
quality is positively related to perceived value and guest’s overall satisfaction. Similarly, Guest’s
overall satisfaction works as mediator between service quality and behavioural intentions of the
guests who stayed in hotels. The model is tested empirically with the data from a survey conducted
among 300 guests who stayed in Kodaikanal star hotels during the study period. Dis-proportionate
stratified random sampling is used for the study. Guest’s perceived value, overall satisfaction and
behavioural intentions are evaluated in respect of six service quality dimensions namely tangibles,
responsiveness, reliability, assurance, empathy and convenience. The three hypotheses establish the
fact that service quality and behavioural intentions of the guests in the hotel industry are positively
associated. Reliability service is found to be the best predictor in respect of perceived value;
Assurance service is proved to be the best predictor in respect of Guests overall satisfaction and
Empathy service is inferred to be the best predictor in respect of behavioural intentions.
475
L. Asid Ahamed & R. Khader Mohideen, “Service Quality and Guests Behavioural Intentions: A Study in the
Kodaikanal Star Hotels” – (ICAM 2015)
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
INTRODUCTION
The development of Indian economy purely depends upon the growth of its various sectors
especially the contribution of service sector (64.8) is tremendous in recent years. Among the service
sector, share of trade, hotel, restaurant, transport and communication as a group is the largest
contributor to GDP with 35 %. Availability of good quality and affordable hotel resort rooms plays
an important role in boosting up the growth of tourism in the country. Revenues of hotel and
restaurant industry poised to reach 826.76 billion. There were 2,895 classified hotels having a
capacity of 1, 29,606 rooms in the country.
The GDP of Tamil Nadu is 14.22 percent in 2013-14 with 45 percent of service sector. The
tourism industry of Tamil Nadu is the second largest with an annual growth rate of 16 per cent in
2013 and also stands second in total employment at 9.97 per cent. Tamil Nadu is rich in attracting
both domestic and foreign tourists through its natural resources, monuments, architecture, hill
stations and etc. Kodaikanal, Ooty, Yercaud, are popular Hill stations.
Kodaikanal "Switzerland of the East" is predominantly run by tourism and allied
industries. The number of tourists increased from two million in 1999 to 9.7 million in 2013 which
include both foreign and domestic tourists. According to international access: June 2013, there are 15
Budget hotels and 18 Star hotels in kodaikanal.
To satisfy the need of the tourist, government initiates to improve and develop infrastructure
facilities such as travels, hotels and restaurants and etc., in Kodaikanal. The features offered to the
visitors will create good perception towards the service provider.
THE FEATURES OF STAR HOTEL RESORTS
Safe deposit box in front desk, Guestrooms, Cafes and Complimentary breakfast, Restau-
rant with the Multi-Cuisine, Housekeeping, Irons/Ironing boards, Doctor-On-Call, Accommodations
provide desks and phones, Mini-bar / lounge, Business amenities including a meeting
room and limo/town car service, Complimentary wireless high-speed Internet access and 32-
inch LCD TVs with cable, Complimentary toiletries, Health Club (fitness/Massage
center), Tour/Ticket assistance, Gift shops/Newsstands and Guest parking is complimentary.
These facilities are offered to the guests who stayed in any one of the star hotels of
Kodaikanal.
LITERATURE REVIEW
SERVICE QUALITY, CUSTOMER SATISFACTION AND BEHAVIOURAL INTENTION
Service quality has a positive influence on customer satisfaction. The service of Gronros
(1984) covers both functional and technical quality which measures respectively the tangibility and
intangibility from actual service performance. Parasuraman et al. (1988) show the relationship
between service quality and customer satisfaction by using five cues of quality i.e. tangibility,
reliability, responsiveness, confidence and communication. Dagger & Sweeney (2006) identifies
service quality cues into two dimensions which include technical service quality and functional
476
service quality. Similarly, Mei et al. (1999) identifies three cues of hotel service quality which
include employees, tangibles and reliability in the Australian hotel industry.
Olurunniwo et al. (2006) identifies four cues of service quality which includes tangibles,
recovery, responsiveness and knowledge in the hotel industry. seven cues of service quality which
include courtesy and competence, communication and transactions, tangibles, knowing and
understanding the customer, accuracy and speed of server, solution to the problems, and accuracy of
hotel reservations. Saha (2009) shows service quality is the significant determinant of customer
satisfaction, and quality of service satisfaction affects such behavioural intentions of the customer.
Behavioural intention includes price sensitivity, spoken word, repurchase visit, willingness
to recommend the organisation to others & loyalty (Ryu & Han, 2010; Zeithmal, 1996; Swonson &
Davis, 2003). Zineldin‘s (2006) Low service quality leads to unfavorable behavioural intentions
(Burton et al. (2003). The greater the customers' experience, the better the customer is willing to
reuse the services. Positive behavioural reduces the cost of marketing, and it may increase revenue if
new customers are attracted (Riechheld & Sesser, 1990). Kandampully & Hu (2007) argue that
customer satisfaction has direct relationship with customer loyalty. Customer loyalty is the major
component of behavioural intentions. Both service quality and satisfaction increase hotel‘s image.
SIGNIFICANCE OF THE STUDY
Service Quality Management has become the prime issue in Kodaikanal business along with
the growth of the tourism and its allied sectors since 2000s. The reason for growing awareness in
service quality is directly related to organization‘s short and long term financial goals, increased
market share and sustainable competitive advantage. Service quality management practices have a
significant and positive relationship with behavioural intention.
The expected result of service quality is to create emotional experience to satisfy customer
by providing superior service quality make organization distinct from its competitors and gain a
sustainability and service quality induce long lasting effects in their behaviour, i.e. willingness to
stay in the same hotel, recommendations by the customers to their friends, associates with the same
hotel and readiness to pay high price. (Kandampully, 2000, Ladhari, (2009).
There is still lack of sufficient research in the field of service quality, perceived value,
guest’s satisfaction and behavioural intentions in the hotel industry. Therefore, this research is
mainly focused to examine the direct relationship between the perception on service quality and
behavioural intentions of guests stayed in Kodaikanal star hotels.
OPERATIONAL DEFINITION
DESCRIPTION DEFINITIONS
Hotel An establishment providing lodging, meals and other guest services.
Star Hotel Amenities to the guests stayed with standard features.
Tourists Traveller, visitor who travel with a purpose. i.e pilgrimage, leisure.
Guest’s Tourists who stay in a hotel for a while
Service quality Various dimensions such as tangibles, responsiveness, reliability, assurance, empathy and convenience.
dimensions
Perceived value Attitude on worthiness of service offered.
Guest’s overall satisfaction Determination of quality of service actually delivered and level of happiness experienced towards the
service.
Behavioural intention Revisit, good word of mouth and repurchase intention – based on satisfaction level.
477
RESEARCH METHODOLOGY
SAMPLE
The target population of this study consisted of the guests who visited Kodaikanal for the
purpose of leisure and stay at least one time as guest in any one of the select star hotels. There are 18
listed star hotels in Kodaikanal, out of them six hotels are selected for the study. The study adopted
dis- proportionate stratified random sampling, sample size was determined as 300 with confidence
level of 95% and confidence interval of ±4%.
DATA COLLECTION AND INTERVIEW SCHEDULE
The study used both primary and secondary data. Primary data were collected through the
structured questionnaire and secondary data were gathered from referral journals, articles,
publications, magazines and Websites. An interview schedule probing the demographic and profile
characteristics of the guests such as, gender, native place, age, educational qualification, occupation,
income and marital status and dimensions of service quality which includes tangibles,
responsiveness, reliability, assurance, empathy and convenience, perceived value of the guests,
overall guests satisfaction and behavioural intention of the guests. Perceptions of respondents were
measured on the five point Likert’s scale from strongly disagree (1) to strongly agree (5). The
interview schedule consisting of 46 items (7 demographic and 39 perception information) were
distributed to 300 guests stayed in Kodaikanal star hotels. The sample respondents are selected on
the basis of dis- proportionate stratified random sampling method.
TOOLS USED
Percentage analysis, descriptive analysis and multiple regression analysis are used to
examine the results of the study.
RESULTS AND DISCUSSION
PROFILE CHARACTERISTICS OF GUESTS
An empirical study was conducted by using a interview schedule to know the profile
characteristics of guests who stayed in Kodaikanal star hotels.
Table I. Profile characteristics of guests

Variables Frequency Percent
Gender
Male 195 65
Female 105 35
Nativity
Salem 56 19
Coimbatore 45 15
Tiruchirappalli 38 13
478
Madurai 43 14
Tirunelveli 38 13
Chennai 36 12
Others 44 14
Age Group (in Years)
25 – 35 61 20
35 – 45 104 35
45 – 55 88 29
Above 55 47 16
Educational Qualification
Diploma 42 14
Under graduate 118 39
Master Degree 72 24
Professional 34 12
Below HSC 34 11
Occupation
Government 71 24
Private sector 121 40
Self employed 58 19
Professional 23 8
House wife 27 9
Monthly Income
Below 25000 71 24
25000 - 35000 106 35
35000 - 45000 73 25
45000 - 55000 40 13
Above 55000 10 3
Marital Status
Unmarried 60 20
Married 240 80
Note: n=300
The guests characteristics of the respondents are summarized in Table I. It reveals that a
majority (65 per cent) of the respondents were males. 19 per cent of respondents were Salem, 15 per
cent were Coimbatore, and 12 per cent were Chennai. 35 per cent respondents were belonging to 35-
35
45 years of age group. Majority (39 per cent) of the respondents were graduates. 40 per cent of
respondents were private sector employees and only 8 per cent were professional.
profe 35 per cent
respondents were belonging to the category of 25000 - 35000 monthly earners. A majority (80 per
cent) of the respondents were married. 47 per cent respondents visited for 2-3
2 times, 24 per cent
respondents visited for only one time.
time
479
L. Asid Ahamed & R. Khader Mohideen, “Service
“ Quality and
nd Guests Behavioural Intentions: A Study in the
DESCRIPTIVE STATISTICS AND RELIABILITY TEST
Table II: Descriptive Statistics and Reliability Test

No. of Cronbach's Hotelling's
Variables Mean SD F Sig.
Items Alpha T-Squared
Tangible services 9 4.14 0.72 0.827 122.376 15.118 0.000**
Responsiveness Services 3 4.12 0.77 0.825 2.539 1.267 0.000**
Reliability Services 4 4.12 0.76 0.796 48.385 16.075 0.000**
Assurance Services 5 4.14 0.75 0.865 73.625 18.314 0.000**
Empathy Services 4 4.10 0.80 0.904 43.047 14.301 0.000**
Convenience Services 4 4.22 0.68 0.728 210.082 69.793 0.000**
Perceived value 1 4.10 0.60 -- -- -- --
Guest’s overall satisfaction 4 4.19 0.76 0.899 63.091 20.960 0.000**
Behavioural intention 4 3.97 0.78 0.893 625.282 207.732 0.000**
Overall factors
38 4.12 0.73 0.964 1301.908 33.072 0.000**
(including Perceived value)
** Significant at 0.01 level
The table II describes the perceptions on service quality (29 items), perceived value
(1 item), their overall satisfaction level (4 items) and behavioural intention (4 items) of the guests.
Regarding the service quality, mean value of Convenience is the highest (M=4.12) and
empathy is the lowest (M=4.10). But lowest standard deviation correspondences to empathy is only
0.80. This indicates that consistency in empathy is higher than other service quality. But
Convenience is more essential for guest’s satisfaction and behavioral intention. The mean value of
all service cues ranges between 4.10 to 4.22 in the rating of agree and strongly agree level. It means
service quality in the hotel industry in Kodaikanal is good. Mean value of overall guest’s satisfaction
and behavioral intentions is 4.19 and 3.97 respectively. This indicates that the guest’s have high rate
of word of mouth (recommendation to their family and friends to stay in the hotel) and that‘s really
influential to promote the willingness to stay in the same hotels when they visit Kodaikanal.
The table also reveals that, Cronbach alpha coefficient values of all cues are above 0.60
which is good in general and very good in particular which shows strength of association and
consistency of a question. Empathy services are the highest (0.90) and Convenience (0.72) has
lowest. The Hotelling's T-Squared was utilized to find the difference in the means of the six
dimensions of service quality, guest’s overall satisfaction and behavioural intention. The result
confirms it at 1 percent level.
MULTIPLE REGRESSION ANALYSIS
Multiple regression analysis was used to determine the relationship between Service Quality
dimensions and perceived value, Service Quality dimensions and Overall Guest Satisfaction and
Service Quality dimensions and Behavioural Intention.
480
HYPOTHESES
Based on the research purpose the following hypotheses were framed:
1. Service quality dimensions have no significant relationship with perceived value.

2. Service quality dimensions have no significant relationship with guest’s overall satisfaction.
3. Service quality dimensions have no significant relationship with behavioural intentions.
Table III: Multiple Regression Analysis

Service Quality Dimensions
Perceived Value Guest’s Overall Satisfaction Behavioural Intentions
Variables
B t Sig. B t Sig. B t Sig.
(constant) 2.247 11.460 0.000 0.715 3.921 0.000 0.527 3.526 0.000
Tangible -0.012 -0.155 0.017* 0.085 1.137 0.025** -0.012 -0.193 0.047*
Responsiveness -0.045 -0.626 0.032* 0.013 0.191 0.048** 0.188 3.394 0.001**
Reliability 0.049 0.743 0.000** 0.045 0.729 0.046** 0.093 1.850 0.045*
Assurance 0.042 0.537 0.002** 0.187 2.548 0.000* 0.162 2.683 0.008**
Empathy -0.159 -1.982 0.048* 0.153 2.037 0.003** 0.219 3.560 0.000**
Convenience -0.026 -0.338 0.036* 0.129 1.793 0.024** 0.094 1.599 0.011*
Dependent Variable: Perceived Value, Guest’s Overall Satisfaction and Behavioural Intention
** Significant at the 0.05 level (2-tailed), p<0.05;
* Significant at the 0.01 level (2-tailed), p<0.01
Perceived Value: R2 =0.746, F Value=1.357*
Guest’s overall Satisfaction: R2 =0.509, F Value=10.078*
Behavioural Intention: R2 =0.307, F Value=21.624*
In all the cases, independent variables are Service Quality Dimensions and the Dependent
Variables are Perceived Value, Guest’s overall Satisfaction and Behavioural Intention.
SERVICE QUALITY DIMENSIONS AND PERCEIVED VALUE
It is found that “Reliability service” is the best predictor, since it exerts maximum
contribution (t=0.743, p<0.01) to perceived value. The R square (0.746), which indicates all the
independent variables together explain 74.6 percent of the variance in perceived value, which is
highly significant (F Value=1.357, p<0.05).
SERVICE QUALITY DIMENSIONS AND GUEST’S OVERALL SATISFACTION
“Assurance service” is proved to be the best predictor, since it exerts maximum

contribution (t=2.548, p<0.01) to guest’s overall satisfaction. The R square (0.509), which indicates
all the independent variables together explain 51 percent of the variance in guest’s overall
satisfaction, which is highly significant (F Value=10.078, p<0.05).
481
SERVICE QUALITY DIMENSIONS AND BEHAVIOURAL INTENTIONS
“Empathy service” is inferred to be the best predictor, since it exerts maximum

contribution (t=3.560, p<0.01) to behavioural intentions. The R square (0.307), which indicates all
the independent variables together explain 31 percent of the variance in behavioural intentions,
which is highly significant (F Value=21.624, p<0.05).
CONCLUSION
Therefore, service quality dimensions have exerted significant influence on the perceived
value, guest’s overall satisfaction and behavioural intentions of guests stayed in the Kodaikanal star
hotels. It is also observed that Reliability service, Assurance service and Empathy service are
inferred to be the best predictors. Hence, it recommended that the star hotels of Kodaikanal should
offer all the service quality dimensions in an effective manner with special emphasis on the above
three best predictors, in order to sustain and develop their business.
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International Journal of Management

INTERNATIONAL (IJM), ISSN OF

ISSN 0976-6502 (Print)

SERVICE QUALITY AND GUESTS BEHAVIOURAL

Dr. L. Asid Ahamed

Dr. R. Khader Mohideen

THE FEATURES OF STAR HOTEL RESORTS

SERVICE QUALITY, CUSTOMER SATISFACTION AND BEHAVIOURAL INTENTION

SIGNIFICANCE OF THE STUDY

DATA COLLECTION AND INTERVIEW SCHEDULE

RESULTS AND DISCUSSION

PROFILE CHARACTERISTICS OF GUESTS

Table I. Profile characteristics of guests

DESCRIPTIVE STATISTICS AND RELIABILITY TEST

Table II: Descriptive Statistics and Reliability Test

MULTIPLE REGRESSION ANALYSIS

Based on the research purpose the following hypotheses were framed:

1. Service quality dimensions have no significant relationship with perceived value.

Table III: Multiple Regression Analysis

SERVICE QUALITY DIMENSIONS AND PERCEIVED VALUE

SERVICE QUALITY DIMENSIONS AND GUEST’S OVERALL SATISFACTION

“Assurance service” is proved to be the best predictor, since it exerts maximum

SERVICE QUALITY DIMENSIONS AND BEHAVIOURAL INTENTIONS

“Empathy service” is inferred to be the best predictor, since it exerts maximum

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