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ServiceQualityofHotel:WeightedAverageSERVQUALMethod

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Service Quality of Hotel: Weighted Average SERVQUAL Method

Mohamed Ismail Mohideen Bawa, Senior Lecturer in Management, Department of Management,

Faculty of Management and Commerce, South Eastern University of Sri Lanka, Oluvil,

mbmismail1974@gmail.com, 00 94 77 69 444 77, January, 2012.

Velnampy, T., Dean/ Faculty of Management Studies & Commerce, University of Jaffna, Sri

Lanka, tvnampy@yahoo.co.in, 0094 777 44 83 52

Abstract

In Sri Lanka, there is an increasing trend for service industry. Statistics show that contribution of

service sector is higher than that of agriculture and industry. Hotels are one of the industry that

falls into service sectors. South Eastern Region of Sri Lanka (SERSL) represents the hotel

industry that is already a boomed business. This study aims at knowing about factors of service

quality. 135 hoteliers were selected for questioning during 2013 using a non- probability

sampling technique. Results showed that unweighted SERVQUAL Scores for tangibility,

responsibility, reliability, assurance and empathy are 307, 130.5, 104.4, 76.25 and 73.6

respectively. These results showed that there was a wider gap between expectation and

perception of customers from the point of view of hoteliers for tangibility dimension. Reliability

and responsibility have a moderate gap between expectation and perception of customers from

the point of view of hoteliers. Assurance and empathy have a low gap between expectation and

perception of customers from the point of view of hoteliers. There were different gaps these had

different importance among hoteliers. Hoteliers consider empathy, assurance, reliability,

responsibility and tangibility in varying important. Weighted Average Score was 2245.95. When

comparing weighted Average Score with all other Weighted Scores hoteliers can identify to

which SERVQUAL dimension should be focused more. Tangibility has to be focused more by

hoteliers than other SERVQUAL dimensions such as responsibility, reliability, assurance and

empathy.

Keywords: Hotel, Service Quality, Weighted Average SERVQUAL Method

1. Introduction

Service industry has been growing rapidly during the last decades. Service marketers contribute a

lot to Srilankan economy. Wikipedia (2013) indicated that growing contribution of service

sector. In terms of the statistics, sector wise Gross Domestic Product (GDP) indicated that

agriculture, industry and services play vital role for Srilankan economy. Estimated contribution

in these sectors were 12%, 30.1% 57.9% by the year 2012. It is evident that the service sector

contributes around 58 % of the economy. There are number of services that incorporate their

portion to this higher proportion of contribution. Service marketers try hard for the contribution

of service sector. Service sector has to maintain quality to its maximum. Service quality is a

comparison of expectations with perception. All service business has to meet customer needs

whilst remaining economically competitive. Improved service quality may increase economic

competitiveness. One of the major contributory sectors to this economy is trading section that

has hotels, restaurants, retail, wholesales, and so on. In South Eastern Region of Sri Lanka

(SERSL), hotel industry is already a boomed business that is run by a number of individuals,

family-owned, male-headed family members. Service quality is important in all services.

Specifically speaking, hotel industry is one of the major concerns for service quality. Customers

prefer the utmost quality in their eatables and drinkables. They prefer quality in hotels too.

2. Statement of the Problem

Cronin and Taylor (1994) studied about reconciling performance-based and perceptions-minus-

expectations measurement of service quality. There are tangibility, reliability, responsiveness

and so on. Different studies highlighted about different elements for measuring service quality.

These elements for measuring service quality were used in different service industries.

Specifically, the major contributory sectors to growth were the financial services, telecom,

trading and transport. The information technology sector is growing steadily in Sri Lanka.

Tourism has been one of the major foreign exchange earners for decades. The target of the

country’s tourism development board is to attract 2.5 million tourists and earn $2 billion by

2016. SERVQUAL elements have been studied in these different industries. Parasuraman,

Zeithaml and Berry (1985) studied about a conceptual model of service quality. They also

proposed different elements for service quality. These empirical evidences support that service

quality is measured by number of elements. According to the version of U. S. A., customers are

king. Few of these hotel consumers stated that hotels should have excellent and modern looking

equipment. This shows that tangibility component of the service. Few other have indicated when

hotels should promise to accept their orders and release their orders to in certain times. This

shows that reliability is one of the other elements for service quality. There is consensus among

different service quality elements. However, there is no clear idea about the elements of service

quality among the hoteliers.

3. Research Questions and objectives

This study raises what are the factors for service quality?. This research question is converted

into research objective. Thus, this study attempts to know about factors of service quality.

4. Justifications for this study

This study is carried out by researcher for various reasons. First, service sector contributes a lot

to Srilankan economy. Wikipedia (2013) revealed that occupation- wise labor force is found in

agriculture, industry and services. Agriculture, Industry and Services represent 31.8%, 25.8%

and 42.4% on an estimated basis by 2012. This statistics discloses that the importance of service

sector in Srilankan economy. Service sector is the pioneer in playing the role for economy.

Composition of service sector is embraced by hotel industry too. This study fills literature gap.

Number of studies has been carried out in this respect in different countries and in different

contexts. This study is conducted in Sri Lanka in the context of hotel industry. This study fill

methodological gap too. Previous number of studies studied service quality in the ways of

different methodological aspects. This study is conducted to carry out a weighted average

method. Studies have been conducted directly on satisfaction. This study divides expectation and

perception separately for applying weighted average method. Fourth, this study would be a

motivation for hoteliers who are involved hotel industry. Hoteliers can know which service

quality elements should be improved further. Fifth, this study reveals the priority of consumers in

respect to the service quality. Based on this priority, hoteliers can make their service quality

elements.

5. Empirical Review

Ismail (2012) studied about service quality and bank client satisfaction in South Eastern Region

(SER) of Sri Lanka. Ismail studied about service quality and bank client satisfaction in South

Eastern Region (SER) of Sri Lanka. These two studies were in different methodological contexts

and in different industries. These two studied were tested in banking environment. Cronin and

Taylor (1992) measured service quality. This study found the conceptualization and

measurement of service quality and the relationships between service quality, consumer

satisfaction, and purchase intentions. The results suggest that a performance-based measure of

service quality may be an improved means of measuring the service quality construct; service

quality is an antecedent of consumer satisfaction; consumer satisfaction has a significant effect

on purchase intentions, and service quality has less effect on purchase intentions than does

consumer satisfaction. Carman (1990) studied about consumer perceptions of service quality.

This study measures the perceived quality of a service situation. The scale was tested in 4 service

settings different from those of the original test such as a dental school patient clinic, a business

school placement center, a tire store, and an acute care hospital. Six basic questions of interest to

the retailer are discussed. They are the number of dimensions and how generic they are; the

extent to which item wording can be changed; service situations that include multiple service

functions; the validity of analyzing differences between expectations and perception; the point at

which expectations information should be obtained, and the relationship between expectations

and importance. Grönroos (1984) studied about a service quality model. This study is based on

test of a sample of business executives, which describes how the quality of services is perceived

by customers. Study concludes that quality dimensions are interrelated and that the importance of

image should be recognised.

6. Conceptualisation and operationalisation

Literature review assisted to get figure 1 for measuring service quality. Tangibility is measured

by modern looking equipment, the physical facilities, neat-appearing employees and materials

associated with the service. Responsiveness is measured by timing of services, prompt service,

willing to help and never be too busy to respond to customers’ requests. Empathy is measured by

individual attention, convenient operating hours, customers’ personal attention, customer’s best

interests at heart and understanding of the specific needs of their customers. Assurance is

measured by the behavior of employees, safe transactions, employees’ courteousy with

customers and knowledge to answer customers’ questions. Empathy is measured by customers

individual attention, convenient operating hours, personal attention to customers, customer’s best

interests at heart and understanding of specific needs of their customers. Construct, variables are

derived from literature review and adopted from Parasuraman, et.al. (1985).Figure 1 shows

conceptual model.

Figure 1: Conceptual model

(Source: Parasuraman, Zeithaml and Berry, 1985)

7. Methodology

7.1 Population and sample

Population is all hoteliers who run hotel in South Eastern Region of Sri Lanka. Sampling frame

is not accessible to the researcher. Since sampling frame is not accessible to researcher this study

considered a non- probability sampling. Out of 200 questionnaires, 135 questionnaires were in

usable condition.

SERVQUAL

Tangibility

Reliability

ResponsibilityAssurance

Empathy

7.2 Data collection

Data were collected from hoteliers. Data collectors were from Undergraduates of final year

student of Faculty of Management and Commerce, South Eastern University of Sri Lanka during

2013. Table 1 shows the SERVQUAL gap.

Table 1: SERVQUAL gap Expectation statement Perception statements Expectation Perception Gap

Tangibility

Excellent hotels will have modern looking equipment

ABC hotel has modern looking equipment 945 882 63

The physical facilities at excellent hotel will be

visually appealing

ABC hotel’s physical facilities are visually appealing 945 601 344

Employees at excellent hotels will be neat appearing

ABC hotle’s reception desk employees are neat appearing

945 586 359

Materials associated with the service (such as

welcome, no smoking statements) will be

visually appealing at an excellent hotels

Materials associated with the service (such as

welcome, no smoking statements) are visually

appealing at ABC hotel

945 483 462

Total 3780 2552 1228

Reliability

When excellent hotels promise to do something

by a certain time, they do

When ABC hotel promises to do something by a

certain time, it does so

945 910 35

When a customer has a problem, excellent

hotels will show a sincere interest in solving it

When you have a problem, ABC hotel shows a sincere

interest in solving it

945 672 273

Excellent hotels will perform the service right the first time

ABC hotel performs the service right the first time 945 850 95

Excellent hotels will provide the service at the

time they promise to do so

ABC hotel provides its service at the time it promises

to do so

945 805 140

Excellent hotels will insist on error free records ABC hotel insists on error free records 945 966 -21

Total 4725 4203 522

Responsiveness

Employees of excellent hotels will tell

customers exactly when services will be

performed

Employees in ABC hotel tell you exactly when

services will be performed

945 749 196

Employees of excellent hotel will give prompt

service to customers

Employees in ABC hotel give you prompt service 945 794 151

Employees of excellent hotel will always be

willing to help customers

Employees in ABC hotel are always willing to help

you

945 749 196

Employees of excellent hotel will never be too

busy to respond to customers’ requests

Employees in ABC hotel are never too busy to

respond to your request

945 966 -21

Total 3780 3258 522

Assurance

The behavior of employees in excellent hotel will instill confidence in customers

The behavior of employees in ABC hotel instills confidence in you

945 882 63

Customers of excellent hotels will feel safe in

transactions

You feel safe in your transactions with ABC hotel 945 822 123

Employees of excellent hotel will be consistently courteous with customers

Employees in ABC hotel area consistently courteous with you

945 805 140

Employees of excellent hotel will have the

knowledge to answer customers’ questions

Employees in ABC hotel have the knowledge to

answer your questions

945 966 -21

Total 3780 3475 305

Empathy

Excellent hotel will give customers individual

attention

ABC hotel gives you individual attention 945 882 63

Excellent hotel will have operating hours convenient to all their customers

ABC hotel has operating hours convenient to all its customers

945 777 168

Excellent hotel have employees who give

customers personal attention

ABC hotel has employees who give you personal

attention

945 822 123

Excellent hotel will have their customer’s best interests at heart

ABC hotel has your best interest at heart 945 910 35

The employees of excellent hotel will

understand the specific needs of their customers

The employees of ABC hotel understand your specific

needs

945 966 -21

Total 4725 4357 368

(Source: Survey data)

7.3 Data presentation

Data are presented using expectation score, perception score and SERVQUAL gap score. It is

presented in the figure 2.

Figure 2: Expectation score, Perception score and SERVQUAL gap score.

7.4 Procedure and formulas

First, total score for expectation and perception is calculated. Second, gap is derived by

deducting total perception score from total expectation score. Third, average construct score is

obtained by total gap score for each construct divided into number of items in each construct.

Fourth, unweighted SERVQUAL score is calculated. Fifth, importance is given on the basis of

the priority. Sixth, weighted average SERVQUAL Score is calculated.

Unweighted SERVQUAL Score = (Total Average Construct Score/ Number of n1=1 Average Construct…For. (1)

Weighted SERVQUAL Score = (Weighted Score/ Number of n1=1 SERVQUAL dimensions)……………..For. (2)

8. Results and Discussion of Findings

Expectation Maximum Score for item is 7. There were 135 hoteliers. Total Expectation Score

would be 945 (7*135). Perception Maximum Score for item differs between 1 to 7. There were

135 hoteliers. Total Perception Score would range according to item score of hoteliers. Gap =

Total Expectation Score – Total Perception Score. Average Construct Score = Total Gap Score

for each construct is divided into number of items in each construct. Average Construct Score

were calculated for five SERVQUAL dimensions. They are: Average Tangibility Score = 1228/

4 = 307; Average Reliability Score = 522/ 5 = 104.4; Average Responsibility Score = 522/ 4 =

130.5; Average Assurance Score = 305/ 4 = 76.25 and Average Empathy Score = 368/ 5 = 73.6.

Unweighted SERVQUAL Score = (Total Average Construct Score/ Number of n1=1 Average Construct) =

691.75. Weighted SERVQUAL Score = (Weighted Score/ Number of n1=1 SERVQUAL dimensions) =

2245.95. Unwighted and weighted SERVQUAL Scores are presented in table 2.

Table 2: Unwighted and weighted SERVQUAL Scores

SERVQUAL dimensions Unweighted

SERVQUAL Score

Score of importance Weighted Score

Tangibility Score 307 10 3070

Reliability Score 104.4 20 2088

Responsibility Score 130.5 15 1957.5

Assurance Score 76.25 25 1906.25

Empathy Score 73.6 30 2208

(Source: survey data)

9. Conclusion

Unweighted SERVQUAL Scores disclosed that tangibility, responsibility, reliability, assurance

and empathy has got scores of 307, 130.5, 104.4, 76.25 and 73.6 respectively. These results

showed that there was a wider gap between expectation and perception of customers from the

point of view of hoteliers for tangibility dimension. Reliability and responsibility have a

moderate gap between expectation and perception of customers from the point of view of

hoteliers. Assurance and empathy have a low gap between expectation and perception of

customers from the point of view of hoteliers. There were different gaps these had different

importance among hoteliers. Hoteliers consider empathy, assurance, reliability, responsibility

and tangibility in varying important. Weighted Average Score was 2245.95. When comparing

weighted Average Score with all other Weighted Scores hoteliers can identify to which

SERVQUAL dimension should be focused more. Tangibility has to be focused more by hoteliers

than other SERVQUAL dimensions such as responsibility, reliability, assurance and empathy.

10. Suggestions

Results indicated that tangibility has to be focused more by hoteliers than other SERVQUAL

dimensions such as responsibility, reliability, assurance and empathy. Therefore, hotels should

focus on modern looking equipment, appealing physical facilities, neat-appearing employees and

visually appealing things.

11. Limitations and future research venues

Sample size has not been taken into account using sample size formulae. So, research can be

conducted to eliminate this limitation. SERVQUAL includes number of dimensions. But, few

dimensions have been considered in this study. Moreover, this study is geographically bounded

to SERSL. Future researchers can be done to remove these shortcomings.

References

Carman, J. M. (1990), “Consumer perceptions of service quality: An assessment of the

SERVQUAL dimensions’, Journal of Retailing, Vol. 66 No.1, pp. 33-55.

Cronin, J. J. and Taylor, S. A. (1992), “Measuring Service Quality: A Reexamination and

Extension”, Journal of Marketing, Vol. 56, No. 3, pp. 55-68

Cronin, J. J. and Taylor, S. A (1994), “ SERVPERF versus SERVQUAL: Reconciling

Performance-Based and Perceptions-Minus-Expectations Measurement of Service Quality”,

Journal of Marketing, Vol. 58, No. 1, pp. 125-131

Gronroos, C. (1984) "A Service Quality Model and its Marketing Implications", European

Journal of Marketing, Vol. 18 Iss: 4, pp.36 - 44

Parasuraman, A. And Zeithaml, V. A. and Berry, L. L. (1985), “A Conceptual Model of

Service Quality and Its Implications for Future Research”, Journal of Marketing, Vol. 49, No.

4, pp. 41-50

Ismail, M. B.M. (2012), “Service Quality (SQ) and Bank Client Satisfaction (BCS) in South

Eastern Region (SER) of Sri Lanka”, International Conference on Synchronizing

Management Theories and Business Practices: Challenges Ahead, pp. 251-55

Ismail, M. B. M. (2012), “Service Quality (SQ) and Bank Client Satisfaction (BCS) in South

Eastern Region (SER) of Sri Lanka”, International Conference on Business and Information

2012: Challenges & Opportunities in the 21st Century, pp. 21-6

Wikipedia (2013), “Economy of Sri Lanka’, Economic Statistics, Accessed from: http://

en.wikipedia.org/wiki/, Accessed on: 22/ 10/ 2013.