ROLE OF SERVICE QUALITY AND ITS IMPACT ON CUSTOMER SATISFACTION; AN INVESTIGATION INTO THE HOTEL INDUSTRY OF KARACHI

Abstract

Introduction: Hospitality Industry in General and Hotel Industry in particular is very much dependent on the quality of service provided by the hotels and customer satisfaction. Most people in Pakistan believes that it is very lucrative business which involves one time measure investments and huge profits can be made within very short span of time, which is incorrect. Besides, there is a very huge cost involves in it to keep the customers happy and retain them for future business. This research is focused on analyzing the role of service quality and its impact on customer satisfaction an investigation into the hotel industry of Karachi. Purpose: The purpose of this research is to highlight the main factors of service quality that are influencing the customer satisfaction. These factors were picked up from a service quality evaluation model called SERVQUAL model which helps us understand the significance of each factor involved in service quality. Factors such as Tangibility, Service Supply, Caring, and Assurance & Convenience were evaluated. Methodology: It is a quantitative research and data was collected through survey questionnaires filled by customers staying in Hotels in Karachi. SPSS was used for data analysis. For this research, the sample size consists of 401 participants from different background. Only 4 & 5 Star hotels of Karachi were included in this research. The research was conducted among the corporate executives, business travelers and leisure travelers of all ages and genders in prominent 4 & 5 star hotels of Karachi. Result: The result of this research reveals that for travelers, Convenience is the most significant factor of service quality followed by Caring which is second most significant factor of service quality. Third is assurance followed by Service Supply and Tangibility It is further concluded that Convenience and Caring were the two factors that affected Customer Satisfaction the most. Although all the factors were statistically significant and showed a great impact on Customer Satisfaction However, we cannot underestimate the significance of other three factors which also plays major role in service quality and its impact on customer satisfaction.