Service quality evaluation and the mediating role of perceived value and customer satisfaction in customer loyalty

Loyalty has become the most important strategic aim in the hotel industry. The purpose of this paper is to obtain an empirical understanding of loyalty in the Kuala Lumpur hotel sector.

The dimensions of service quality as perceived by hotel customers were identified through the literature review. Hypotheses were formulated and tested to: examine the effects of process quality and outcome quality on perceived value, tourist satisfaction, and tourist loyalty; and to determine if perceived value and tourist satisfaction play a mediating role in the effect of process quality and outcome quality on tourist loyalty. In this study, the sample was 417 respondents from the international tourists who stay at least one night in four- or five stars hotels in Kuala Lumpur. Collected data were analyzed by structural equation modeling.

The statistical findings supported a relationship between process quality and outcome quality with perceived value and tourist satisfaction, and tourist loyalty with perceived value and tourist satisfaction. The results also indicated that process quality and outcome quality did not have a direct effect on tourist loyalty. Perceived value and tourist satisfaction mediated the relationship between process quality and outcome quality with tourist loyalty.

The finding of this study proposed that the hoteliers targeting international tourists with service quality including process and outcome quality should focus more on these factors to build loyalty. For instance, the tangible, responsiveness, reliability, empathy, assurance, and convenience as the dimensions of process quality and valence, waiting time, and sociability as the dimensions of outcome quality should meet the needs of the international tourists, therefore increasing tourist loyalty through perceived value and tourist satisfaction.