Business Administration Project Topics

Assessment of Customers Satisfaction on Quality Services Offered in Hotels, Lagos

Assessment of Customers Satisfaction on Quality Services Offered in Hotels, Lagos

Assessment of Customers Satisfaction on Quality Services Offered in Hotels, Lagos

Chapter One


The three major objectives of this study were:

  1. To understand the relationship of service quality and customer satisfaction
  2. To assess the perception of service quality of the hotel
  3. To provide data that would be useful to management in designing and developing training program in the hotel through assessment of service quality of the hotel.




Our focus in this chapter is to critically examine relevant literatures that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.

Precisely, the chapter will be considered in three sub-headings:

  • Conceptual Framework
  • Theoretical Framework and
  • Empirical Review


Concept Of customer satisfaction

Trilyo(2018) opined that customer satisfaction is the internal feelings of every individual which may be satisfaction or dissatisfaction resulting from the assessment of services provided to an individual in context to customer’s anticipation by an organization. Customer satisfaction is called customer feedback as assessment after buying goods or services compared as their expectations. According to Razak, Nirwanto & Triatmanto (2016), customer satisfaction is estimated by utilizing the customer expectations with the presentation of the goods or services that can address the needs and expectations of the Customer. A satisfied customer indicates that there is a similarity between the performance of the product and service with the expectation of the customer, where it will attract them to repurchase the items. Simultaneously, a disappointed customer would persuade different customers to not re-buy and subsequently they will move to another service providers. Initially, Customer satisfaction is a significant segment of a business procedure, just as customer maintenance and item repurchase. Customer satisfaction is an indicator that predicts the future customer loyalty (Hill, Roche and Allen 2007.)

Hotels are continuously trying to improve the service just to satisfy their customer because higher customer satisfaction will leads towards customer loyalty.

customer satisfaction is the evaluation of a guest whether or not the quality of a service meets his expectations. Performance that falls below expectations makes guests dissatisfied (Kottler & Killer, 2006). In the hotel industry, satisfaction of guests is in terms of their satisfaction with the service of the F&B department and the customer relations developed by hotel staff (Al Rousan, 2011; Parasuraman et al., 1985). Customer satisfaction is considered one of the most important outcomes of all marketing activities in a market-oriented firm. The obvious objective of satisfying a customer is to expand a business, to gain higher market share, and to acquire repeat and referral business, all of which lead to improved profitability (Barsky, 1992; Carev, 2008). However, the customer satisfaction concept in this model refers to judgement that depends on both good service quality and fitness of service to the needs of guests (Tse and Wilton, 1988)

Customer satisfaction is a critical success factor in service organizations. Hotel industries in developing countries also have to compete with others and have to

satisfy local and international customers, because, today‟s customers are more aware, educated and open to a lot of information through web sources, internet,

bulletins, magazines, journals, articles, etc., (Armstrong, Mok et al. 1997; Padma and Rajendran 2010). Customer satisfaction is a key to building lasting relationships with consumers. Satisfied customers repurchase the service, recommend and encourage others to use the service, develop positive word of mouth toward the service and the organization, pay less attention to competitive brands and advertising, are less sensitive to price and buy other services (Zekiri, 2011). A dissatisfied consumer, on the other hand, responds differently. As a satisfied customer tells people about a good service experience, dissatisfied customer complains to even more people than a satisfied customer does. In the hotel industry, service quality received much attention from both researchers and practitioners because of its positive impact on financial performance, customer satisfaction, and retention (Triyo 2018).

Customer satisfaction has been one of the top apparatuses for an effective business. Customer satisfaction is defined as an overall evaluation focused on absolute acquisition and administration participation (Fornell, Johnson, Anderson, Cha and Bryant 1996). Customer satisfaction comes with marketing that demonstrates the customer’s wish for the goodness of the product and service. (Oliver 1999.) As per Kotler and Armstrong (2012), customer satisfaction is the degree to which an item’s apparent exhibition coordinates a customer’s expectations. Kotler and Keller, (2012) also stress that there are a few indicators of customer satisfaction, to be specific, repurchases story, small questions to put forward, readiness to prescribe the product and organizational awareness. Nonetheless, the most important subjects needed to reach or go beyond customer satisfaction are product and its features, functions, efficiency, distribution operation and customer support. Customers who are happy typically hop back and buy more. In addition to buying more, they are often used as a system by exchanging meetings to reach other potential customers (Hague and Hague 2016). Subsequently, when an organization wins a customer it should keep on working up a decent connection with the customer. In the twentieth century, the essence of goods and undertakings is not just to please consumers but also to retain a secure position. Indeed, the consumption of quality goods was very beneficial for customers (Rebekah & Sharyn 2004). Explicit things or administrative highlights and value experiences impact customer satisfaction. Satisfaction is additionally affected by customer’s enthusiastic reactions, their attributions under view of value (Zeithaml and Bitner 2003). Expanded customer satisfaction can give organization benefits like customer loyalty. It may cause consumers to buy regularly and propose goods and services to potential customers at the moment the consumer is satisfied with the organization’s product or service. A business association cannot develop if the company ignores or disregards customers’ necessities (Tao 2014.)

It is natural for hotel operators to invest a tremendous amount of resources in satisfying their customers. As customer satisfaction constitutes a critical barometer for assessing hotel performance, an in-depth appreciation of the factors contributing to both satisfied and dissatisfied customers is paramount to hotel management. On one hand, very satisfied (or delighted) customers are more likely to return and recommend a hotel. Delighted customers exhibit behavioral patterns that are distinct from moderately satisfied customers. On the other hand, very dissatisfied (or frustrated) customers are likely to spread negative word of mouth that not only tarnishes the image and reputation of the targeted hotel but also decreases hotel revenue by deterring potential customers. Indeed, it has been documented that one negative review from an unhappy customer can translate into the subsequent loss of 30 customers (Olsen, 2010).

The above phenomena highlight the urgency for modern hospitality industries to strive for customer delight while averting customer frustration. Yet, it should not come as a surprise that hotel operators have to pursue separate business strategies to attain the two business objectives. Past studies have demonstrated that the determinants of customer delight are distinguishable from those that cause customer frustration (Albayrak and Caber, 2013; Alegre and Garau, 2011; Füller and Matzler, 2008). For instance, while hotel guests may be indifferent to having a clean towel, they are likely to be irritated by the presence of a dirty towel. Conversely, an offering of welcome chocolate in the room may delight customers, even though customers are unlikely to be unhappy in the absence of such services.






In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.


Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.


According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.

This study was carried out to an assessment of customer satisfaction of service quality in the hotel industry in Ikeja, Lagos state. Selected hotels in Ikeja, Lagos State form the population of the study.




This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of ninety six (96) questionnaires were administered to respondents of which only eighty (80) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 80 was validated for the analysis.




In this study, our focus was to assess customer satisfaction of service quality in the hotel industry using 3 selected hotels in Ikeja, Lagos State as a case study. The study specifically was aimed at understanding the relationship of service quality and customer satisfaction, To assess the perception of service quality of the hotel in Lagos State,  and to provide data that would be useful to management in designing and developing in Lagos State. This study was anchored on the three factor theory.

The study adopted the survey research design and conveniently enrolled participants in the study. A total of 80 responses were received and validated from the enrolled participants where all respondent are drawn from the staff of the 3 hotels in Lagos State.


Based on the finding of this study, the following conclusions were made:

  • Higher customer satisfaction, greater competitive advantage, profitabilty to the hotels involved were seen to be the relationship between service quality and customer satisfaction.
  • Quality services rendered, high professionalismof staff and minimal complaints by guests were some of the perceptions guests have on service quality of the hotel.
  • Personal suggestions, enquiry from guests and the use of qustionnaire are some of the ways data can be collected and used for hotel improvement.


In the light of the findings and conclusions, the following recommendations are hereby proposed:

  • Suggestions and complaints from guests should be taken into consideration and acted on accordingly for a enhanced service quality.
  • Staff from the hotel industry should be duly trained and act professionally at all times.
  • customer satisfaction should always come first before hotel policies.


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