THE IMPACT OF CUSTOMER SATISFACTION ON THE DEVELOPMENT OF

THE HOTEL INDUSTRY IN KAMPALA

A CASE STUDY OF SERENA HOTEL

BY

KATUSIIME JULIAN

1 153-O5O54~.O3485

A RESEARCH REPORT SUBMITTED TO THE COLLEGE OF ECONOMICS AND

MANAGEMENT DEPARTMENT OF LEISURE AND HOSPITALITY IN PARTIAL

• FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF A DEGREE IN TOURISM AND

HOTEL MANAGEMENT

SEPTEMBER, 2018

DECLARATION

This research report is my original work and it hasn’t been presented for Examination in any

other University.

~z.r.KATUSIIME JULIAN

1153-05054-03485

APPROVAL

This research report has been submitted for examination with my approval as University

Supervisor.

‘~

JOWALIE WAMPANDE

SUPERVISOR

111

DEDICATION

This study is dedicated to the management and Staff of Serena Hotel, for their tireless effort

to ensure that this project becomes successful.

iv

ACKNOWLEDGEMENT

First and foremost, I wish to acknowledge my supervisor Mr. Jowalie Wampande for his

unrelenting support and guidance throughout this research report. My appreciation goes to all

other members of faculty and administrative staff who directly and indirectly contributed

towards the success of this report. I also wish to thank my classmates who gave me the moral

support during the writing of this proposal.

V

TABLE OF CONTENTS

DECLARATION ii

APPROVAL iii

DEDICATION iv

ACKNOWLEDGEMENT v

LIST OF TABLES x

ABSTRACT xi

CHAPTER ONE 1

BACKGROUND OF THE STUDY 1

1.0 Introduction 1

1.1 Background to the Study 1

1.2 Statement of the Problem 2

1.3 Purpose of the Study 3

1.4 Research Objectives 3

1.4 Research Questions 3

1.5 Scope of the Study 4

1.5.1 Geographical Scope 4

1.5.2 Content Scope 4

1.5.3 Time scope 4

1.6 Significance of the Study 4

CHAPTER TWO 6

LITERATURE REVIEW 6

2.0 Introduction 6

2.1 The Various forms of Customer Satisfaction 6

2.2 Ways through which customer satisfaction affects development 8vi

2.3 Constraints to effective customer satisfaction 11

CHAPTER THREE 14

METHODOLOGY 14

3.0 Introduction 14

3.1 Research design 14

3.2 Area of the study 14

3.3 Population of study 14

3.4 Sample size and selection 14

3.5Sampledesign 15

3.6 Sources of data ~ 15

3.6.1 Primary data 15

3.6.2 Secondary data 15

3.7 Data collection methods 16

3.7.1 Questionnaires 16

3.7.2 Interviews 16

3.8 Data collection procedure 16

3.10 Data Validity and Reliability 16

3.11 Data processing, analysis and presentation 16

3.11.1 Data processing 16

3.11.2 Data analysis 17

3.11.3 Data presentation 17

3.12 Limitations of the study 17

CHAPTER FOUR 18

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS 18

vii

4.1 Introduction .18

4.2 Demographic Characteristics 18

4.2.1 Response Rate 18

4.1.1 Findings on the demographic information 19

4.1.2 Findings on Marital status of the respondents 19

4.1.3 Findings on Age bracket of respondents 19

4.1.4 Findings on level of education 20

4.1.5 Findings on Position held 21

4.1.6 Findings on the Period served in this organization 21

4.2 Descriptive Statistics 22

4.2.1 Forms of Customer Satisfaction Mechanisms Being Used by Serena Hotel 22

4.2.2 The Ways Customer Satisfaction Affects the Development of the Hotel Industry 24

4.2.3 Constraints to Effective Customer Satisfaction in Serena Hotel 26

CHAPTER 29

SUMMARY OF THE FINDINGS, CONCLUSIONS AND RECOMMENDATION 29

5.0 Introduction 29

5.1 Summary of the Study 29

5.1.1 Forms of Customer Satisfaction Mechanisms Being Used at Serena Hotel 29

4.2.2 The Ways Customer Satisfaction Affects the Development of the Hotel Industry 29

5.1.3 Constraints to Effective Customer Satisfaction at Serena Hotel 30

5.3 Conclusion 30

5.4 Recommendation to the Study 31

5.5 Areas for Further Study 32

REFERENCES 33

APPENDICES 35

viii

Appendix I: Questionnaire for the Staff and Management of Serena Hotel 35

SECTION B: THE FORMS OF CUSTOMER SATISFACTION MECHANISMS BEINGUSED BY SERENA HOTEL 36

APPENDIX 11. INTERVIEW GUIDE 39

APPENDIX III: KRECIE AND MORGAN (1970) table for sample size determination 40

ix

LIST OF TABLES

Table: 3.1 Categorization of Respondents 15

Table: 4. 1 Response rate 18

Table: 4. 2 Gender of respondents 19

Table: 4. 3 Marital status 19

Table: 4. 4 Age bracket of respondents 19

Table: 4. 5 Level of education 20

Table: 4. 6 Position held 21

Table: 4. 7 Duration in Kampala Serena Hotel 21

Table: 4. 8 Showing Descriptive Statistics Forms of Customer Satisfaction Mechanisms 22

Table: 4. 9 Ways Customer Satisfaction Affects the Development of the Hotel Industry 24

Table: 4. 10 Constraints to Effective Customer Satisfaction in Serena Hotel 27

x

ABSTRACT

The purpose of the study was to assess the impact of customer satisfaction on the

development of the hotel industry in Uganda. The objectives of the study were to identify the

various forms of Customer satisfaction mechanisms being used in the hotel industry, to

evaluate the ways through which Customer satisfaction affects the development of the hotel

industry and to examine the constraints to effective Customer satisfaction in the hotel

industry.

The study was conducted using a Cross-sectional research design; this is because the

researcher intends to involve a variety of respondents with knowledgeable information

concerning the impact of customer satisfaction on the development of the hotel industry.

Quantitative measures was employed through the use of questionnaires to capture numerical

data. On the other hand, the researcher will employ the use of qualitative methods to obtain

non numeric data since it was more detailed compared to the quantitative methods.

From the fmdings, the majority of the respondents agreed that there is suggestion Box service

as a form of Customer Satisfaction Mechanisms with a mean of 2.78 although some of the

respondents had different views as shown by the standard deviation of 1.542. There is

customer feedback with a mean of 4.00. However; some of the respondents had different

views as shown by the standard deviation value of 1.355. Effective service delivery leads to

Customer Satisfaction Mechanisms with a mean of 3.88 and some respondents, however, had

different views as shown by the standard deviation of 1.136, Notification services increases

customer satsfaction shown by a mean of 122 and standard deviation of 1.433. From the

above findings, it was concluded that the effect of customer satisfaction in the hotel industry

in Uganda is real as it is in the global hotel industry. As Uganda strives to be an industrialized

nation by 2030, growth and development of the hotel industry cannot be underestimated as it

is seen to contribute to this realization. The study recommends ffurther studies to be carried

out on the determinants of customer satisfaction in hotels.

xi

CHAPTER ONE

BACKGROUND OF THE STUDY

1.0 Introduction

This chapter presents the background of the study, statement of the problem, general

objective, specific objectives, and research questions, scope of the study, significance of the

study and the definition of key terms.

1.1 Background to the Study

In the past years, customer satisfaction was not a phenomenon organisations took serious

because there was no intense competition as is the case in today’s contemporary world.

Customer satisfaction refers to the contentment one feels when upon a fulfillment of a desire,

need, or expectation, (Thomas 2010). With the understanding of Customer satisfaction, it has

been argued that Customer satisfaction plays a role in client attraction and retention in the

hotel industry which ultimately improves on their performance. In addition, Grieg and Ander

(2009) perceive Customer satisfaction as the ways of ensuring client satisfaction with a

product or service. Often, Customer satisfaction takes place while performing a transaction

for the customer, such as making a sale or returning an item. Customer satisfaction can take

the form of an in-person interaction, a phone call, self-service systems, or by other means.

Smith, (2012) asserts that Customer satisfaction is an extremely important part ofmaintaining

ongoing client relationships in the hotel industry. For this reason, many hotels have worked

hard to increase their customer satisfaction levels. Tosh & Green (2010) supplemented that

very often, customer satisfaction goes beyond maintaining good quality, timeliness and

having considerably good prices. The nature of customer satisfaction today entails warranting

customer feedback such that the customer’s conscious requirements are attended to prudently.

As Bill Gates once said; “You’re most unhappy customers are your greatest source of

learning” Customer satisfaction thus entails ensuring that there is a backward flow of

information from the customers to preserve customer customization. According to David,

(2015), successful Customer Satisfaction starts with the first contact an organization has with

a client and continues throughout the entire lifetime of a relationship. A company’s ability to

attract and retain new customers, is not only related to its product or services, but strongly

related to the way it services its existing customers and the reputation it creates in the hotel

industry.

A study conducted in South Africa portrayed that 35% of the Businesses that were

established with great products but did not maintain decent and respectable Customer

satisfaction mechanism collapsed before they reached 5 years of operation in business. Diane,

(2011) asserts that the companies today are using ICT as an effective way to reach out to their

customers to measure the level of satisfaction. Businesses now utilise social media platforms,

computerised applications and websites to provide platform to customers to convey their

grievances.

In Uganda, hotels such as Africana, Serena, Common wealth resort have maintained the use

of digital mechanisms for customers to express dissatisfaction in case of delays or a poor

service. This platform is also used to measure the service level of hotels and as such

awareness is raised on what department needs to be improved. Dianne, (2011), further posits

that Customer satisfaction surpasses giving the customer what they expect; it’s about

exceeding their expectations. The Development of the hotel sector in Uganda is steadily

growing with the sector employing over 934,930 people who are both skilled and unskilled,

(UBOS statistical report 2015). Jn addition, the Hotels and restaurants sub sector has the

highest growth of 20.6 percent in 2015/16 and a total GDP share of 45.1 percent. The

infrastructural development realised throughout the country is partially attributed to the

development of the hotel industry with the sector also providing a forward and backward

linkage to the tourism industry. Serena is one of the biggest hotels in Uganda. The hotel has

managed to maintain dependable, steadfast as well as consistent customer service. The hotel

will therefore serve as an ideal case study for the investigation.

1.2 Statement of the Problem

Hotels have undertaken a wide range of Customer satisfaction initiatives in a bid to maintain

sustainable development in the Hotel industry. Some of the Customer satisfaction initiatives

that have been undertaken include the provision of online reservation platforms to ensure

convenience, usage of suggest boxes, treating customers with courtesy and with respect and

lastly handling dissatisfied customers conscientiously.

2

However, despite the initiatives undertaken by the hotel industry to ensure Customer

satisfaction, the development of the hotel industry is still lacking as most hotels especially in

the central region continue to collapse and their performance has continued to greatly

deteriorate. The UBOS report (2015) exhibited that the hotels and restaurants output declined

by 0.7 percent with a growth of only 20.6 percent attained in 2015/16. The decline was

attributed to the decline of visitors and tourists in the country which raises skepticism about

the customer satisfaction mechanisms in place. Failure to respond to customer satisfaction

queries has serious implications on the development of the hotel industry as it greatly aids

employment opportunities to an immense population, improves towards infrastructural

development and also a major GDP contributor in the country through foreign exchange. It is

therefore against this background that the researcher is obliged to investigate the Impact of

customer satisfaction on the development of the hotel industry in Uganda Using Serena hotel

as the case study.

1.3 Purpose of the Study

The purpose of the study was to assess the impact of customer satisfaction on the

development of the hotel industry in Uganda.

1.4 Re~earch Objectives

The research was guided by the following research objectives.

i. To identify the various forms of Customer satisfaction mechanisms being used in the

hotel industry.

ii. To evaluate the ways through which Customer satisfaction affects the development of

the hotel industry.

iii. To examine the constraints to effective Customer satisfaction in the hotel industry.

1.4 Research Questions

The research was guided by the following research questions

i. What are the various forms of Customer satisfaction mechanisms being used by the

hotel industry?

3

ii. Through which ways has Customer satisfaction affected the development of the hotel

industry?

iii. What are the constraints to effective Customer satisfaction in the hotel industry?

1.5 Scope of the Study

1.5.1 Geographical Scope

The study was conducted at Serena hotel located in the City centre. The hotels vicinity made

it an ideal case study for the researcher whilst conducting the data collection exercise.

1.5.2 Content Scope

The study investigated the researcher the impact of customer satisfaction on the development

of the hotel industry in Uganda. The study specifically identify the various forms of

Customer satisfaction mechanisms being used in the hotel industry, the ways through which

Customer satisfaction affects the development of the hotel industry, and lastly the constraints

to effective Customer satisfaction in the hotel industry.

1.5.3 Time scope

The research study was carried out for a period of 3 months that is from January to April

2018. The timeframe is anticipated to be ideal for the data collection exercise. The researcher

however considers to obtain literature ranging in a timeframe of 4 years that is from the year

2013-2017.

1.6 Significance of the Study

The research will be of the following relevance;

i. The recommendations from the study might be useful to policy makers such as those

in UWA, Hotel associations in Uganda and the government in in relation to policy

formulation.

ii. The study will also enable hotels such as Serena to come up with better and

appropriate customer care techniques to enhance the development of the tourism

industry.

4

iii. The study might also benefit Future scholars and academicians who might be

interested in undertaking similar investigations.

iv. The study will also act as a prerequisite for the researcher to fulfil her requirements

for the award of a degree in tourism and hotel management.

5

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter is mainly going to deal with literature review on the impact of customer

satisfaction on the development of the hotel industry. The researcher consults the works of

accredited scholars and researchers in order to understand and investigate the research

problem, sources such as books, magazines, journals, internet and dissertations are analyzed

to deepen the theoretical foundation of the research.

2.1 The Various forms of Customer Satisfaction

Customer satisfaction is the result of the correlation between a customer’s assumption and a

customer’s feelings. By way of explanation, customer satisfaction is identified as the

distinction between assumed quality of service and the customer’s involvement or feelings

after having perceived the service. Customer satisfaction depends on such dimensions as

assurance, responsiveness, reliability, empathy and tangibles, and further components such as

personal, price and situational factors that may arise as the service quality. (Bateson &

Hoffman 2000.)

Harold, (2012), observed that cross functional teams are used in new product development to

shorten development cycle times, improve quality and reduce development costs. These goals

are attained because the functional areas perfonn their tasks in groups rather than each

functional area performing its task and passing the project off to the next functional area and

the key functional groups usually design engineering, manufacturing, quality assurance,

purchasing and marketing work on the new product and development simultaneously.

Adair, (2000), argues that innovation calls for a special form of creativity which he called

team creativity. He said that all organizations are teams or at least they are potentially so.

For effective production and marketing of goods and services these days, delivery on time, at

the required quality and at a competitive price calls for a high performance team work. But to

improve these existing products or to develop new products and services requires a different

order of teamwork (team creativity).

6

According to Woods et al, (2001), it was noted that customer satisfaction requires meetings

of teams, sections or departments to understand clearly who does what and ensure reliability

which is the single most important aspect of delivering outstanding customer satisfaction.

The teams organize themselves to take the advantage of the individual skills team members

bring with them, work together as a group in ways that bring out the best results and evely

member of the team must be accountable to each other for the success of the whole team.

Customer satisfaction makes it possible to define and insist upon the maintenance of the

standards on behalf of the customers and clients as most of the times customers do not

specify their needs by referring to the teams’ attitudes or reliability standards but complain

bitterly when the team falls below their perceived standards.

According to Woods et al, (2001), further observed that the essence of customer satisfaction

skills lies in good communication and open approach to people and ideas and that all

communication skills should be used in promoting good customer satisfaction. They also

noted that for any organization to meet the needs of customers there is need for team work to

obtain feedback from customers and colleagues (both within and outside the organization) as

well as about the need to establish planning cycles. Each cycle of planning and doing should

therefore reduce the amount of uncertainties being faced and obtain feedback not simply from

planning but by doing.

Baguley, (2012), stipulates that customer satisfaction involves different members of the

organization working together and combining their individual skills and abilities to come up

with something that is either a product or a service that was highly accepted by the customers

Innovation and Creativity: Sometimes teams of employees work together to develop new

products or services through contributing and combining their different ideas and skills. This

helps organizations to have new services for customers that eventually improve on its

performance and create and sustain customers. Bradfield et al, (2011) postulates that that

direct competition is one of the factors that make companies form development teams. They

further stated that to be effective, production has to provide a means by which an

organization can focus its resources to meet the needs of their chosen customers efficiently.

First it is important to know where you are starting from, second is the decision on where you

wish to go in future and the outcome should be a commitment by the organization to a

deliberate policy on which customers to serve with products or offerings.

7

2.2 Ways through which customer satisfaction affects development

Customer satisfaction (or the lack of it) is expressed through survey feedback, customer calls,

emäils or even using the Short Message Service. Through these different means of telling

your company to step up or lose out, the customer is also providing you with indications of

what are the possible hiccups in service that you could remedy, Tonseak, (2013) postulates

that Customer satisfaction in organisations creates sustainability as the hotel-customer

relationship intensifies during the total time of business relation. Customer clubs can help to

improve general customer satisfaction and relationship and profitability.

Customer satisfaction helps customers to communicate their needs straight to the sellers.

Customer satisfaction is very important because it helps to learn about the business’s

strengths and weaknesses. Business holders can just know their strengths and weaknesses and

make the progression. Not only this, also customer satisfaction also helps to appropriate

resources for eventual strike or satisfaction. Furthermore, it supports to show calmness about

making better quality of products and services to both the employees and the customers. It

does not help to learn about strengths and weaknesses but helps it also to persuade

competitive strengths and weaknesses. Similarly, it helps to benefit more vision into the

sources of frustration and areas desiring progression. At last, customer satisfaction helps to

accommodate a system for informing management of problems or situations requiring actual

promotion, (Anthony 2011).

Cannon (2015) stated that, “it is important to recognize that people do not exist in isolation.

They are members of particular societies, communities and families. This social and

economic environment play a major part in shaping the needs as well as the specific pattern

ofmotivation, values and drives which shaips choice. Cultural sensitivity is very important to

consider while determining customer satisfaction.

In this regard, Palwoda and Thomas (2012) opined that it is imperative for hotels to blend

with good management styles, quality of services to the firm’s volume of sales will increase.

Paiwoda, further points out that consumer preference is an individual attribute towards tastes

for goods and services”. Preferences are shaped by past experience, advertising information,

religious and other cultural and social factors. These attributes should be profoundly spelt out

to ensure that the right blend of customer satisfaction techniques are put into place.

8

And other important skill is problem solving skills. If we described problem, then it is said to

be an opportunity for improvement. We should not make any mistake which occurs the

problems rather than applying the skills for solving it. For making the customer satisfied the

restaurant persons or any other organization should have the skills for solving the problems

immediately. If the customer’s problems are not solved by the organization, then the

customer are totally dissatisfied with the services and it might make it a big issue for the

organization. (Ramachandran 2006.)

According to Cook, (2010), the importance of customer satisfaction is irrefutable, customers

are your company given that the key success lies not only in having a good product but also

in being to provide a customer with the level of service they need. This eventually makes

them attached to the institution. Berko, (2004), observes that a company might not even

realize that they deliver poor quality services due to differences in the way managers

customers view acceptable customer satisfaction levels.

Service quality has stood an importance for the hospitality industry. It has been identified as

one of the most effective means of building a competitive position and improving

organizational performance. Service quality is a focused evaluation that reflects the

customer’s perception of specific dimensions of service, reliability, responsiveness,

assurance, Empathy, tangibles, satisfaction on other hand, is more inclusive: it is influenced

by perceptions of service quality, product quality, and price as well as situational factors and

personal factors. Service quality affects customer satisfaction by providing performance. For

example, if we take an example of Mac Donald restaurants, then the consumers will get food

service here, high quality everywhere the same they like to be in Mac Donald’s restaurants. It

happens because of the high quality services. Customers today apprehend a very high general

level of service in hospitality, tourism, and leisure. The accomplishment of competitors in

these fields will thus be actuated by strategies concentrating on quality of services to add

value, as argued to product or price differentiation. Service Quality Management in

Hospitality, Tourism and Leisure focuses approaches and strategies that will augment the

distribution of services, and supplies fair and understandable annotation of theoretical ideas

and their practical operations. (Kandampully, & Sparks 2001.)

According to LeBlanc, (2008), hotel management must identify and improve upon factors

that can limit customer defection. These could be; employee performance and

9

professionalism, willingness to solve problems, friendliness, and level of knowledge and

communication skills among others which all end up to quality customer satisfaction! care.

This also comes in the way staff is recruited, care should be taken in terms of who to recruit

proper qualifications of the support staff and management should be given due consideration,

if need be they should have knowledge of how to handle customers.

For management to overcome such a problem and to losing customers, firms would be aware

of the determinants of service quality and this entails ensuring reliability which involves

consistence of performance and dependability for example hotels as service firms should find

a way of sending out customer statements, (Arnold and Kramp et al, 2016). The Competence

is also important as pointed out by Klaus, (2017), competence entails possession of the

necessary skills and knowledge to perform the required tasks effectively. This should come in

the way they relate with fellow staff, their ability to fit in and relate with others freely. Also

the front desk officers who deal with customers directly and 1 ~ should be professionals

capable of giving proper guidance to the clients who do not know the way the institution

operates, depending on what customers’ needs are should be able to direct them to those

concerned for example if a client comes to the institution for the first time and would like to

get a loan, the officer at the customer satisfaction desk should direct the client to the loan

officer but the best way to feel well taken care of would be for the officer himself to get up

from their desk and walk the client to the respective loan officer

According to Bartlet, (2008), Access is concerned with approachability and ease of contact

for example service firms that have weekend operations and more accessible than those that

don’t, institutions with clients in remote areas would send some of their officers to provide

services in their homes or open up small branches so that clients have access to those

services, the officers should also be approachable like the way Berko, (2008), states it,

‘service with a smile’ gives a positive picture of how the institution treats its clients this

would motivate clients to want to associate with the institution.

According to Smith, (2009), Courtesy involves politeness, respect, consideration and

fliendliness of contact personnel. Here all people should be treated equally regardless of what

they are dressed, tribe. One of the challenge that most institutions face is that they treat

customers depending on their economic status, the poor are always looked at as time

consumers with no greater impact added on the institution, however the only way to

10

overcome this challenge is by appreciating all clients the way they are and whichever reason

they would want to be part of the consumers of the institution’s service ought to be

considered.

2.3 Constraints to effective customer satisfaction

Most organizations do not succeed in temis of outreach maximization mostly because they do

not have a well-planned customer satisfaction system and set out procedures to implement the

service that is accepted quality. Without this in place it was almost impossible to attract and

retain clients.

The Budget constraints in hotels are a big constraint, when companies prepare the budget and

allocate funds to various projects and departments, most often customer service seems to get

left out. They try to squeeze in new ideas and processes aimed at increasing customer base.

An increased customer base means more business, more issues and more calls to the

customer service cell. However, due to the fact that no budget was allocated to increase the

number of associates to take on this extra business, customers are meted out shoddy service.

It becomes a vicious circle soon, since irate customers mean that employees was unhappy and

the attrition soars. Re-hiring and training takes times and money and due to this budgetary

constraint remains undone, (Kraljic 2013).

Paul, (2009) adds that given the above, when long standing employees leave, you can be sure

that your experts are leaving. Years of handling your customers and understanding your

company’s perspective are wasted since they take this indispensable knowledge and skill with

them which remains irreplaceable for a long time. The new hires or the less experienced

within the team, cannot hope to fill those slots or manage the overwhelming demands of the

customer. This is bound to have a serious and adverse impact on your customer service levels

leading to disgruntled customers who threaten to take their business elsewhere.

In addition, Aaron (2015) adds that the lack of supervision and monitoring of ongoing and

fundamental processes within the customer service realm. This could be because the majority

of your customer service representatives may not know about them and even if they are

aware, they are probably unable to understand them enough to implement these processes due

to lack of training. Another constraint within this could be that these processes are not

enforced stringently enough. As companies strive to face and meet the customer’s

11

expectations, they never quite reach the pinnacle since they are constrained by even further

rising customer expectations and demands. Customer service levels in some companies are so

exceptional that they have come to known as the benchmarks for all customer service

endeavors.

Customers have thus begun to expect more as a direct consequence of this. They want better

prices, speedy deliveries, customization, easy access and operation — a list that is seemingly

endless. Some companies are able to match up to these, but the problem arises with the

majority of companies that are unable to ‘rise to the occasion’ for a number of reasons. These

unabashed demands are ubiquitous across all industries.

The traditional policies and strategies that seemed to have worked for some companies

continue in the present day and age too. This leads to a conflict between these policies and

their implementation with the volatile market conditions. The same good results cannot be

expected using the same methods. The constraint lies in the company overlooking this aspect

yet expecting superlative results, (Tracy and Rendon, 2014).

A wide and unprecedented number of communication media are accessible to all. Customers

can bombard a company and its services with demands and queries from just about every

communication medium available. They longer have to take time out to visit the actual

building office of their customer service providers. The customer service representatives face

a challenge of providing consistent service and information across all these mind-boggling

channels. There is no escaping or the possibility of buying time with customers anymore.

They want answers and they want them immediately. What makes negotiating between these

channels even more daunting is the fact that a majority of the customer service

representatives are probably not used to these mediums and completely uninitiated in to the

latest technology and gadgets.

Homogeneity of hotel management services makes it a challenge assuring the customers that

a particular hotel has a diverse service blend. In business where the underlined products have

become commodity like quality of service depends heavily on the quality of its personnel.

According to Leeds, (2012), approximately 40% of customers switch hotels because of poor

service delivery. Leeds (2012), notes that the lack of use of service quality and professional

12

behaviour such as formal greeting, solving clients’ problems and complaints, service with a

smile constrain customer satisfaction hence reduced clientele.

Arkiran, (2004), noted that customer loyalty through satisfaction where by looking after

present customers can generate repeat and increased business and may lead to attraction of

new customers from positive of mouth communication. Customer retention is more cost

effective than trying to attract new customers. Cost savings also accrue from ‘getting things

right the first time’

According to Smith, (2009), hotels always seeks to maintain easy and close communication

between officials and clients to create a big impact on the way clients associate with the

institution, emphasis is also put on maintaining a cordial relationship between the clients and

the institution. Rumi, the ancient Sufi mystic and poet, used to write: “If you desire healing,

let yourself fall ill, let yourself fall ill”. I like this quote. In my understanding, it means that in

order to experience true health, which is our natural state, we need to undergo a certain

cleaning. We need to remove things which don’t belong to the natural state, which become

barriers to our experiencing it.

13

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This section provides an operational frame work disclosing how data was collected, analysed,

processed, and presented. It covers the research design, data type and sources, data collection

methods, sample size and selection, area and population of the study, ethical issues and

research procedures.

3.1 Research design

The study was conducted using a Cross~sectional research design; this is because the

researcher intends to involve a variety of respondents with knowledgeable information

concerning the impact of customer satisfaction on the development of the hotel industry.

Quantitative measures was employed through the use of questionnaires to capture numerical

data. On the other hand, the researcher will employ the use of qualitative methods to obtain

non numeric data since it was more detailed compared to the quantitative methods.

3.2 Area of the study

The study was conducted at Serena hotel located in the City centre. The hotels vicinity will

make it an ideal case study for the researcher whilst conducting the data collection exercise.

3.3 Population of study

The population of study included hotel managers, receptionists and the hotel casual workers.

A selected number of customers in hotels will also be involved to provide an intuition

whether they are satisfied by the hotels services. The hotel managers was involved in the

study so as to obtain their response regarding the phenomenon under investigation.

3.4 Sample size and selection

The sample size was determined using Krecie and Morgans, (1970) table for sample size

determination. The researcher anticipates sampling a total population of 75 respondents from

Serena hotel although some of the clients was involved to ascertain their satisfaction of the

services offered at the hotel. Using the table, a sample population of 75 respondents implies

that the study should constitute of 63 respondents as established below.

14

Table 3.1: Categorization of Respondents

Category Proposed Sample size Sampling method

sample

Hotel Managers 05 03 Purposive sampling

Receptionists 05 03 Purposive sampling

Hotel staff 50 45 Simple randomsampling

Clients 15 12 Simple randomsampling

TOTAL 75 63

3.5 Sample design

The study was carried out using both simple random sampling and purposive sampling. The

researcher used purposive sampling techniques to obtain responses from the top management

staff. This technique was used to acquire data from the key informants because they was

deemed to be more knowledgeable about the customer satisfaction techniques adopted Serena

hotel.

The researcher also adopted the use of Simple random sampling to obtain responses from the

staff and clients of the organization. Simple random sampling was used to enable equal

participation of the respondents and also due to the homogeneous nature of the respondents in

the organization.

3.6 Sources of data

3.6.1 Primary data

Primary data was collected from respondents using both qualitative and quantitative

approaches. Qualitative data was collected by observation, interviews and questionnaires.

3.6.2 Secondary data

Secondary data was obtained by consulting relevant agencies, annual hotel management

reports, websites and the internet, library records, returns and reports from Serena Hotel and

other relevant journals and publications.

15

3.7 Data collection methods

3.7.1 Questionnaires

Well-designed questionnaires was used to collect data, these was both open ended and closed.

Questionnaires was used to acquire information from staff of Serena Hotel, for the purpose of

having all questions answered; questionnaires was considered to be a better tool for data

collection because they eliminate the element of grasping during the data collection exercise.

3.7.2 Interviews

The researcher employed Semi-structured interviews; these involved direct face to face

integration with respondents. Interviews was used because they enable the researcher to

compare and contrast information obtained in other interviews. Interviews was advantageous

in a sense that they generate a wide diverse of views in their raw form.

3.8 Data collection procedure

The researcher received a letter of introduction from the Kampala International University to

introduce her to the authorities in Serena hotel. After the grant of permission; the researcher

requested the Human Resource Manager to enable accessibility to the employees, the

manager had to introduce the researcher to the various respondents in the hotel environment

to respond to the questionnaires and interviews.

3.10 Data Validity and Reliability

The questionnaires were pre- tested to ensure their validity and reliability in order to reduce

on ambiguity of the questions. The respondents were selected at random to answer the

questions asked to confirm their validity and reliability. The researcher ensured that the

questionnaires were tried out on the researcher’s peers before they were used on the actual

sample.

3.11 Data processing, analysis and presentation

3.11,1 Data processing

Data processing was undertaken through sorting, editing, coding and entry of the data in to

the computer for analysis, opinion and ideas were categorized and conveyed into their

specific objectives.

16

3.11.2 Data analysis

Data analysis involved the use of both quantitative and Qualitative methods, quantitative

methods was used to quantify numerical data while qualitative methods was used to tabulate

the findings for easy interpretation and completeness, each question was looked at to

ascertain whether it has been answered.

3.11.3 Data presentation

Data presentation involved the use of both quantitative and qualitative techniques,

Quantitative techniques was used to present numerical data using statistical software’s such

as Microsoft excel. These was used to tabulate numerical figures into frequencies and

percentages so as to make visual impressions of the fmdings to enable the researcher to come

up with logical and specific conclusions. Lastly Microsoft word was used to present

qualitative data through employing descriptive techniques.

3.12 Limitations of the study

i. Suspicion and fears among respondents might make respondents to decline to provide

the necessary information. However, the researcher will identify herself by use of the

university introductory letter to prove that the study was specifically for academic

purposes.

ii, The time might be insufficient to obtain all the related data. However, the researcher

will ensure that appointments are rescheduled to make the study a success.

iii. Some respondents might fail to return questionnaires which affects the researcher

from obtaining adequate information. The researcher will however trace and make

follow-ups to ensure that all questionnaires are obtained from respondents for

analysis.

17

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

4.1 Introduction

This chapter presents the findings of the study. The chapter provides descriptive statistics of

the respondents before presenting the forms of customer satisfaction mechanisms being used

by Serena hotel, the ways customer satisfaction affects the development of the hotel industry

and constraints to effective customer satisfaction in Serena hotel

4.2 Demographic Characteristics

The demographic research sought to ascertain information about the respondents’

background mainly position held, working period, education level, organization operation period

and the gender. This ensured that the respondents were well informed on the study area and

were able to respond appropriately to the questions fronted on customer satisfaction

techniques.

4.2.1 Response Rate

Table: 4. 1 Response rate

Frequency Percentage

Responded 50 78%

Did not respond 14 22%

Total 64 100%

Source; Author 2018

The study targeted Serena Hotel Kampala branch with 64 questionnaires achninistered.

However, only 50 of them responded as indicated in the table 4.2.1 below depicting a response

rate of 78% and the rest did not turn up. 22% of the respondent did not respond. Mugenda and

Mugenda(1999)indicate that a 50% response rate is adequate whereas 60 pereent is good and

70% is excellent. The response rate achieved by the researcher in the study was made possible

by constant follow-ups through telephone calls, personal visits and email communication

reminders (Table 4.1).

18

4.1.1 Findings on the demographic information

Table: 4. 2 Gender of respondents

Sex Frequency Percent Valid Percent Cumulative Percent

Male 20 40.0 40.0 40.0

Female 30 60.0 60.0 101.0

Total 50 100.0 100.0

Source: primary, 2018

From the fmdings, table 4.2 shows the majority of respondents are female with (60%), (40%)

male among 50 respondents, this implies that the highest percentage is represented by female

employee at Kampala Serena Hotel.

4.1.2 Findings on Marital status of the respondents

Table: 4.3 Marital status

Marital status Frequency Percent Valid Percent Cumulative Percent

Valid Single 9 18.0 18.0 18.0

Married 31 62.0 62.0 80.0

Others 10 20.0 20.0 101.0

Total 50 101.0 101.0

Source: primary 2018

From the table 4.3, the findings showed that 18% of the respondents were singles, 62% were

married and had the highest percentage of the respondents, while 20% were neither married

nor singles.

4,1.3 Findings on Age bracket of respondents

Table: 4. 4 Age bracket of respondents

Age bracket Frequency Percent Valid Percent Cumulative Percent

Valid 20 -29 years 10 20.0 20.0 20.030 -39 years 26 52.0 52.0 72.040 -49 years 5 10.0 10.0 82.050-59 years 8 16.0 16.0 98.0Above 60 years 1 2.0 2.0 100.0Total 50 100.0 100.0

Source: primary data 2018

19

Findings in table 4.4 indicated that majority of the respondents were 52% which were

between the age bracket of 30 -39 years, followed by 20% with the age of 20 -29 years, 10%

were between 40-49 years, and 2% above 60 years. This implies that there were adequate

representation of the study population and data provided represented the views of age groups

therefore, Customer satisfaction is the result of the correlation between a customer’s

assumption and a customer’s feelings. By way of explanation, customer satisfaction is

identified as the distinction between assumed quality of service and the customer’s

involvement or feelings after having perceived the service.

4.1.4 Findings on level of education

Table: 4.5 Level of education

Level of education Frequency Percent Cumulative Percent

Postgraduate 13 26.0 26.0

Certificate 10 20.0 46.0

Diploma 13 26.0 72.0

Degree 5 10.0 82.0

Others 9 18.0 100.0

Total 50 100.0

Source: primary data 2018

From table 4.5 above, the majority of the respondents 26% were Post graduate and diploma

holders respectively and 10%) were degree holders while 18% of the respondents did not

specify their educational background. This implies that the respondents had at least a

minimum level of education which makes the work easier for the Kampala Serena Hotel

despite Customer satisfaction makes it possible to defme and insist upon the maintenance of

the standards on behalf of the customers and clients as most of the times customers do not

specify their needs by referring to the teams’ attitudes or reliability standards but complain

bitterly when the team falls below their perceived standards.

20

Position held Frequency Percent Valid Percent Cumulative Percent

Administrators 11 22.0 22.0 22.0

Accountants 28 56.0 56.0 78.0

Operational Staff 9 18.0 18.0 96.0

Casual workers 2 4.0 4.0 101.0

Total 50 101.0 101.0

Source: primary data 2018

From the table 56% of the respondents were Administrators, 22% were Accountants, 18%

were from Operational Staff and 4% were from Casual workers.

4.1.6 Findings on the Period served in this organization

The researcher also considered the period the respondents have worked in Kampala Serena

Hotel and the findings are presented in the table below.

Table: 4.7 Duration in Kampala Serena Hotel

Duration Frequency Percent Valid Percent Cumulative Percent

Valid Less 1 year 11 22.0 22.0 22.0

1-Syr 21 42.0 42.0 64.0

5-lOyears 8 16.0 16.0 80.0

Above lOyrs 10 20.0 20.0 101.0

Total 50 101.0 101.0

Source: primary data, 2018

Table 4.7, clearly shows that the biggest percentage of 42% have worked for a period of 1 to

5 years in Kampala Serena Hotel, 22% for Less than lyear, 20% for were Above lOyrs, 16%

were between 5-1 Oyears. This implies that most respondents in Kampala Serena Hotel have

worked for many years.

Results in the figure above Demonstrates the biggest percentage of 42% have worked for a

period of 1 to 5 years in Kampala Serena Hotel, 22% for Less than lyear, 20% for were

above 10 years, and 16% were between 5-l0years. This implies that most respondents in

Kampala Serena Hotel have worked for many years.

4.1.5 Findings on Position held

Table: 4. 6 Position held

21

4.2 Descriptive Statistics

Respondents were asked to respond to a number of statements regarding the forms of

customer satisfaction mechanisms being used by Serena. Hotel. The following were the

results;

4.2.1 Forms of Customer Satisfaction Mechanisms Being Used by Serena Hotel.

The study used the questionnaire that was designed and generated using a five-point

scale with different levels of agreement for each statement that is, 1-Strongly Disagree, 2-

disagree, 3-Undecided, 4-Agree and 5-Strongly Agree. This therefore shows that all

responses averaging 3.0 and above accounted for “Agree” whereas all responses

averaging below 3.0 accounted for “Disagree”. Responses were scaled ranging from 1-5;

where 5=Very High, 4High, 2=Low, l=Very low. The key to the rating is: Very low

(1:00-1.80), Low (1.81-2.60), Moderate (2.61-3.40), High (3.41-4.20), Very High (4.21-

5.00). The descriptive statistics are discussed in the table 4.4 below;

Table: 4.8 showing Descriptive Statistics Forms of Customer Satisfaction MechanismsBeing Used by Serena Hotel

Mean Std, Dev Interpretation

There is suggestion Box service as a form of Customer 2.78 1.542 LowSatisfaction Mechanisms

There is customer feedback 4.00 1.355 Very high

Effective service delivery leads to Customer 3.88 1.136 HighSatisfaction Mechanisms

Notification services increases customer satsfaction 3.22 1.433 High

A customer portal is an internal system which allows 3.10 1.764 Highyour customers to access their personal data

Depending on the kind of service or product you 204 1 255 Lowprovide, support rates vary.

Not only the total cost of your product or service, but highalso value for money and how they see this compared 3.18 1.034to the market price.

Take time to look into unsolicited feedback that you Lowcan fmd online in reviews, comments and social media 2.54 1.363posts to broaden your analysis.

The needs of the customer been answered 3.01 1.153 high

22

There’s one good starting point for insights into 2 04 1 255customer satisfaction, its customer loyalty.

Together with customer loyalty, the intent to Highrepurchase a product or service is an indication of 3.18 1.034customer satisfaction.

Customer satisfaction can be increased by keeping an Lowopen mind towards questions or remarks a respondent 2 54 1 363might have, apart from the product or service you’vedelivered.

Valid N (listwise)

Source. Primary data, 2018

From table 4.4 above, majority of the respondents agreed that there is suggestion Box service

as a form of Customer Satisfaction Mechanisms with a mean of 2.78 although some of the

respondents had different views as shown by the standard deviation of 1.542. There is

customer feedback with a mean of 4.00. However; some of the respondents had different

views as shown by the standard deviation value of 1.355. Effective service delivery leads to

Customer Satisfaction Mechanisms with a mean of 3.88 and some respondents, however, had

different views as shown by the standard deviation of 1.136, Notification services increases

customer satsfaction shown by a’fnean of 3.22 and standard deviation of 1.433.

A customer portal is an internal system which allows your customers to access their personal

data with a mean of 3.10 and standard deviation of 1.764, Depending on the kind of service

or product you provide, support rates vary with a mean of 2.04 and standard deviation

1.255. Not only the total cost of your product or service, but also value for money and how

they see this compared to the market price agreed with a mean of 3.18 standard deviation of

1.034. Take time to look into unsolicited feedback that you can fmd online in reviews,

comments and social media posts to broaden your analysis with a mean of 2.54 and standard

deviation of 1.363. Also, there is a need of the customer been answered with (mean =3.01 std

devl.153).

There’s one good starting point for insights into customer satisfaction, its customer loyalty

with a mean of 2.04 and standard deviation 1.255. Together with customer loyalty, the intent

to repurchase a product or service is an indication of customer satisfaction with a mean of

3.18 and standard deviation 1.034. Finally, customer satisfaction can be increased by keeping

23

an open mind towards questions or remarks a respondent might have, apart from the product

or service you’ve delivered with a mean of 2.54 and standard deviation of 1.363.

This implies that \customer satisfaction is an outcome of purchase and use resulting from the

buyers’ comparison of the rewards and costs of the purchase in relation to the anticipated

consequences”. It is also defined in terms of an emotional state that usually arises in response

of evaluating a particular service (Westbrook, 198 1). The former concept highlights the fact

that satisfaction is determined through a cognitive procedure by comparing what customers

give up to get a service( cost) and what they receive in response ( reward) however the later

concept takes satisfaction as an emotional feeling that results during the process of evaluation

(Tam, 2004).

4.2.2 The Ways Customer Satisfaction Affects the Development of the Hotel Industry

Table 4.5 below shows the descriptive statistics on Ways Customer Satisfaction Affects the

Development of the Hotel Industry. Below are the results;

Table: 4.9 Ways Customer Satisfaction Affects the Development of the Hotel Industry

Category ~‘Iean nterptn. td.

Ways Customer Satisfaction Affects the Development

There is increased client base 2.64 vloderate 1.189

There is increase profits margins at the organisation 3.48 High 1 .212

There is growth of the sector 3.77 High 1.124

Increase in GDP that increase economic performance of the country 3.67 High 1.017

An effective customer satisfaction survey reflects development 3.93 High 1.191

Customer satisfaction forms one of the most important foundations 3.15 ~vioderate 1.300

of the long-term business success of an enterprise that leads to

development

High customer satisfaction makes higher prices possible. The 3.46 High 1.22

customer is willing to pay more for reduced risks.

24

Content and enthusiastic customers react less sensitively to price 3.18 ~4oderate 1.063

increases. Just a few customers would end a long-term and fruitful

relationship with a supplier, because of a price increase of 5 %.

Cross-Selling consists of the marketing of similar services to a 3.88 High 0.973

customer who already purchases existing products and services from

the company.

The performance of all business ultimately depends on their success 3.60 High 0.960

in keeping customers - lengthening the lifetimes of their customers.

Building on this distinction of both constructs, it is here postulated 3.71 High 0.900

that perceived overall quality plays a key role of customer 3.89 High 0.964

satisfaction

The customer evaluates the marketer’s performance negatively but 3.13 ~Ioderate 1 .010

tries to initiate a change

The involvement of customers has become a key variable in 3.79 High 0.99

consumer

I usually establish both short and long-term goals to facilitate the 3.95 High 0.897

accomplishment of one’s own work duties efficiently

Average 3.56

Source: Field data, 2018

On establishing the ways Customer satisfaction affects the development. (Table 4.9) show

that the respondents were noncommittal on the statement: there is increased client base (mean

2.64; Std. 1.189), meaning that the respondents were not sure the ways Customer satisfaction

affects the development. Furthermore, of the respondents agreed with statement that: there is

increase profits margins at the organisation (mean 3.48; Std. 1.212). Also, the respondents

agreed with the statement that: there is growth of the sector (mean 3.77; Std. 1.124).

Still on quality, the study found that the respondents agreed with the statement that: Increase

in GDP that increase economic performance of the country (mean 3.67; Std. 1.017). On

whether an effective customer satisfaction survey reflects development (mean 3.93; Std.

1.91). However, Customer satisfaction forms one of the most important foundations of the25

long-term business success of an enterprise that leads to development (mean 3.15; Std.

1.300). Similarly, it helps to benefit more vision into the sources of frustration and areas

desiring progression. At last, customer satisfaction helps to accommodate a system for

informing management of problems or situations requiring actual promotion, (Anthony

2011).

Furthermore, the findings revealed that the respondents agreed with the statement that: High

customer satisfaction makes higher prices possible. The customer is willing to pay more for

reduced risks. (mean 3.46; Std. 1.22). However, the respondents remained Cross-Selling

consists of the marketing of similar services to a customer who afready purchases existing

products and services from the company (mean 3.18; Std. 1.063). The fmdings on Table 4.9

also show that the respondents agreed with the statement that: The performance of all

business ultimately depends on their success in keeping customers - lengthening the lifetimes

of their customers (mean 3.88; Std. 0.973). The respondents also agreed with the statement

that: Building on this distinction ofboth constructs, it is here postulated that perceived overall

quality plays a key role of customer satisfaction (mean 3.60; Std. 0.960).

Furthermore, Table 4.9, for example, shows that the respondents agreed with the statement

that: The customer evaluates the marketer’s performance negatively but tries to initiate a

change (mean 3.71; Std. 0.900), Tn addition, the study also found that the respondents agreed

with the statement that: The involvement of customers has become a key variable in

consumer (mean 3.89; Std. 0.964). However, the study also found that the respondents were

not decided on the statement that: I usually establish both short and long-term goals to

facilitate the accomplishment of one’s own work duties efficiently (mean 3.13; Std. 1.010).

4.2.3 Constraints to Effective Customer Satisfaction in Serena Hotel

This sub section targets Constraints to Effective Customer Satisfaction. Responses were

scaled ranging from 1-5; where 5=Very High, 4High, 3Moderate, 2=Low, 1=Very low.

The key to the rating is: Very low (1:00-1.80), Low (1 .81-2.60), Moderate (2.61-3.40), High

(3.41-4.20), Very High (4.21-5.00). The responses were analysed using the mean computed

through the SPSS program, and are shown in Table 4.2.

26

Table: 4~ 10 Constraints to Effective Customer Satisfaction in Serena Hotel

Category Mean nterptn. td.

There is increased poor Human resource capacity 2.77 Low 1.046

There is limited ICT development delays online booking 3.14 1.034

There poor infrastructure development 3.64 High 1.018

Political upheavals 3.64 High 1.252

Failure to resolve a complaint at first point of contact 2.40 Low 1.248

There is inability to connect the dots and wants of customers 2.43 Low 1.195

Not defining what constitutes a ‘complaint’ effectively 2.56 Low 1.133

Restricting the channel that customers can use to make contact 2.49 Low 1.152

Introducing the human touch where needed 3.23 High 1.187

There is limited commitment within the hotel industry 2.07 Low 0.906

There is poor team work due to some of the more complicated 3.66 High 1.061

customer service issues imply a second interaction.

Average Mean 2.73

Source: Primary data, 2018

Objective three of the study sought to establish the Constraints to Effective Customer

Satisfaction in Serena Hotel. The study (Table 4.11) reveals that many respondents neither

agreed nor agreed with the statement that: There is increased poor Human resource capacity

(mean 2.69, Std 1.201). Also, the fmdings show that there is limited ICT development delays

online booking (mean 2.50; Std 1.152). This means that most organizations do not succeed in

terms of outreach maximization mostly because they do not have a well-planned customer

satisfaction system and set out procedures to implement the service that is accepted quality.

Without this in place it was almost impossible to attract and retain clients.

The study also found that the respondents did not agree or disagree with the statement that:

There poor infrastructure development (mean 2.68; Std 1.331). On health still, the study

27

found that Political upheavals failure to resolve a complaint at first point of contact (mean

2.51; 1.074). This means that some of the more complicated customer service issues imply a

second interaction. It may happen that the customer was served perfectly well during the first

one, but when his issue is escalated to another person, or he gets in touch with another team

member during a second interaction, he experiences disappointment. The need to explain the

issue a second or third time, or sometimes different answers, different interpretations of the

company policy given by agents, can greatly diminish customer experience. There is inability

to connect the dots and wants of customers. There is poor team work due to some of the more

complicated customer service issues imply a second interaction (mean 2.64; Std. 1.189).

These results are presented in Table 4.2. The study found that not defming what constitutes a

‘complaint’ effectively (mean 3.23; Std. 1.187). This means that the employees of Airtel are

comfortable with this service. However, the study also found that restricting the channel that

customers can use to make contact (mean 2.07; Std. 0.906). This means that nobody likes

waiting. Long hold times are one of the most frequent cause of complaint and dissatisfaction

by customers. This seems like the easiest thing to fix. However, many companies still

overlook this important aspect of good service as fast reaction to a customer service request.

It is like getting back to basics in customers service, that’s why I put this factor at the end of

my list. Finally, the study found that the respondents agreed that there is limited commitment

within the hotel industry (mean 3.66; Std. 1.061). Thus there is a lot of work ahead to

eliminate all the above mentioned barriers and allow the perfect customer experience to

happen. Perhaps, your company has already overcome these and is struggling with some

other issues.

28

CHAPTER FIVE

SUMMARY OF THE FINDINGS, CONCLUSIONS AND RECOMMENDATION

5.0 Introduction

This chapter presents the summary of the study; discussion of the findings that were carried

out based on objectives of the study, from which conclusions were drawn and

recommendations made. Further still this chapter presents the limitations encountered and

proposed areas of further study.

5.1 Summary of the Study

5.1.1 Forms of Customer Satisfaction Mechanisms Being Used at Serena Hotel

From table 4.4 above, majority of the respondents agreed that there is suggestion Box service

as a form of Customer Satisfaction Mechanisms with a mean of 2.78 although some of the

respondents had different views as shown by the standard deviation of 1.542. There is

customer feedback with a mean of 4.00. However; some of the respondents had different

views as shown by the standard deviation value of 1.355. Effective service delivery leads to

Customer Satisfaction Mechanisms with a mean of 3.88 and some respondents, however, had

different views as shown by the standard deviation of 1.136, Notification services increases

customer satsfaction shown by a mean of 3.22 and standard deviation of 1.433.

4.2.2 The Ways Customer Satisfaction Affects the Development of the Hotel Industry

On establishing the ways Customer satisfaction affects the development. (Table 4.9) show

that the respondents were noncommittal on the statement: there is increased client base (mean

2.64; Std. 1.189), meaning that the respondents were not sure the ways Customer satisfaction

affects the development. Furthermore, of the respondents agreed with statement that: there is

increase profits margins at the organisation (mean 3.48; Std. 1.212). Also, the respondents

agreed with the statement that: there is growth of the sector (mean 3.77; Std. 1.124).

According to Churchill and Surprenant (1982) “customer satisfaction is an outcome of

purchase and use resulting from the buyers’ comparison of the rewards and costs of the

purchase in relation to the anticipated consequences”. It is also defined in terms of an

emotional state that usually arises in response of evaluating a particular service (Westbrook,

1981). The former concept highlights the fact that satisfaction is determined through a

cognitive procedure by comparing what customers give up to get a service( cost) and what

29

they receive in response ( reward) however the later concept takes satisfaction as an

emotional feeling that results during the process of evaluation (Tam, 2004).

5.1.3 Constraints to Effective Customer Satisfaction at Serena Hotel

Objective three of the study sought to establish the Constraints to Effective Customer

Satisfaction in Serena Hotel. The study (Table 4.11) reveals that many respondents neither

agreed nor agreed with the statement that: There is increased poor Human resource capacity

(mean 2.69, Std 1.201). Also, the fmdings show that there is limited ICT development delays

online booking (mean 2.50; Std 1.152). This means that Customer care at Serena Hotel still

presents some challenges, but on the whole has greatly improved compared to 5 years ago. It

is important to have a vibrant breed of service providers that respect the values of good

customer service to keep pace with the growing folio of investments in the hospitality

industry and the whole spectrum of services.

5.3 Conclusion

The discoveries of this study affirm the verging on clear articulation that the nature of

management is absolutely related with customer satisfaction, the better the relationship

between costs of management the higher the consumer loyalty which eventually prompts

better execution. The image of a hotel also plays a role in development. It implies that the

image of a hotel has a more noteworthy impact on consumer loyalty (Tsiotsou & Goldsmith,

2012).

The study was conducted to explore the correlation between consumer satisfaction and

development. All the speculations were acknowledged, which was demonstrated from the

examination. The quality of services and consumer loyalty are specifically related since high

quality improves the satisfaction. The development in the administration quality or by

enhancing the nature of services the hotels turned out to be more ready to fulfill the needs of

customers. For this reason, the satisfaction of cus-tomers leads toward loyalty as illustrated

by many studies. When a customer is satis-fied, they stay loyal to the hotel and subsequently,

it influences the chances of 30 referring to other customers and creating a good reputation of

the hotel.

From the above fmdings, it can be concluded that the effect of customer satisfaction in the

hotel industry in Uganda is real as it is in the global hotel industry. As Uganda strives to be

an industrialized nation by 2030, growth and development of the hotel industry cannot be

30

underestimated as it is seen to contribute to this realization. Customer satisfaction in this

industry is fueled by the speed and nature in which customer experience is been transferred,

hotel customers are now more knowledgeable than ever before; they have more information

through sophisticated sources of information such as social media, online review and the

power of the internet, they use such modes in recommending experiences of hotel services to

their peers, friends and other prospective hotels clients. There is good customer satisfaction in

the hotel industry in Uganda, the hotel clients reported that satisfaction on reservation,

reception, food quality and beverage quality was satisfactory. Fair ratings were registered in

costs, security and hotel amenities, however, provision of personalized services registered

dissatisfaction. But despite this scenario, there was a general believe that customer

satisfaction has positive impacts on market share, service quality, hotel image, sales turnover,

and that lack of customer satisfaction results in customer and employee turnover. Several

suggestions were identified that could make the hotels in this tourism circuit attain better

customer satisfaction, this strategies include; tailoring requirements to meet customer

expectations, offering of discounts and complimentary especially for loyalty customers. This

further demands that the hotel understands clearly every customer needs and requests in

recognition of their diverse needs and requirements.

The Hotels also ought to aim at offering excellent services through demonstration of current

and relevant service skills in the industry. However personalized service came out as a big

assignment to the industry, most customer decry lack of them same in this tourism region and

this could be a source of dissatisfaction and source of complaint which if not handled well

may lead to negative word of mouth because the hotel visitors were unable to experience

personalized satisfactory services contrary to their expectation in regard to hotel industry.

5.4 Recommendation to the Study

The results of this research suggest that the management of Serena Hotel should be more

proactive as opposed to receptive in their reaction techniques. This implies that the

administration ought to be extremely ready for adjustments in the business environment and

they ought to be quick to react in a short time so as to outmaneuver competition.

31

Serena Hotel needs to do all it takes to stay on top and in this way stay competitive

Serena Hotel ought to likewise forcefully advertise their products and services to promote

mindfulness in the business sector and it should be dynamic and innovative to draw in more

clients and hold the existing ones.

The complaints of the customers ought to be well respected. The hotel will then be more open

to outside thoughts on the off chance that they handle the thoughts. The 31 hotel should

mastermind and present streamlined hotel guides who are more proficient in the hotel

industry.

5.5 Areas for Further Study

Further study should be carried out on the determinants of customer satisfaction in hotels.

The role of value on service quality on customer satisfaction.

The influence of human behaviour on service quality delivery.

32

REFERENCES

Adair Kotler & Armstrong, (2012). Wrong Veronica. Principles of Marketing. 4th ed.

Edinburgh gate, Harlow England: Pearson Education Ltd.

Baguley & Kumar, (2012) Research Methodology. 2nd ed. Ansari Road, New Delhi: APH

Publishing Corporation.

Bill gates, (2015) Managing Service Marketing. Boston: Dryden press.

David & Everard, (2015) Business Principles and Management. 12th ed. USA: Thomson.

Business Blogs. Accessed 11 February 2012.

Dianne & Khan, (2011) Customer Satisfaction: practical tools for building important

relationship. 3rd ed. Canada: Course technology crisp.

Grieg and Ander (2009) Planning Research in Hospitality and Tourism. 1st ed . Oxford:

Elsevier Ltd.

Hoffman, (2000), Service Quality Management in Hospitality, Tourism and Leisure; The

Haworth Hospitality press.

Kurtus, R. 2007. Benefits of satisfying customer complaints. Available: http://www.school

for-champions.comltqm/complaints.htm. Accessed 12 February 2012.

Ramachandran, S. (2006). Top 7 key skills for customer service jobs. Available:

http://top7business.coml?Top-7-Key-Skills-For-Customer-Service-Jobs&id2200

Accessed 19 September 2011.

Richard, E & Hall (2003). Starting a small Business. USA: Infinity Publication.

Sagarmatha Nepalilainen Ravintola (2010), Available: www.sagarmatha.fi Accessed 12

December 2011.

Smooth & Moller, (2012) A Complaint is a gift. (2nd ed.) San Francisco, California: Berett

Koehier.

33

Thomas Acharya, M. (2010) Positioning of Ethnic Restaurants in Finnish Business

Environment. Bachelor’s Thesis. Haaga-Hella University of Applied Sciences. Degree

programme for International Business.

UBOS report (2015), Strategic brand creation for products and services in Uganda.

International Business, Kampala.

34

APPENDICES

Appendix I: Questionnaire for the Staff and Management of Serena Hotel

Dear respondents

I am Katusiime Julian conducting a study on the impact of customer satisfaction on the

development of the hotel industry in Kampala. Your participation in this study will enable me

collect data which is part of the requirements for the award of degree in Tourism and hotel

management of Kampala International University. The information obtained was treated with

utmost confidentiality and used strictly academic purposes and you are requested kindly to

assist in filling the questionnaires. Tick where necessary.

Section A: General Information

Note: For each of the questions, tick against your response or write your response in the

blank space provided.

1. Gender

Female

Male ~

2. Marital status

Single [ElMarried ~

Others [~j

3. Age range

Less than 3Oyrs [El 30-39yrs ~ 40-49yrs [E] 49-5Oyrs [J Over 6Oyrs ~

4. Level of education

Post graduate [E] Certificate [] Diploma ~ Degree[] Others [E]

5 Position held

Administrators ~ Accountants [] Operational Staff [El Casual work[E]

6. Period you have served in this organization

Less than 2 years~ 2-5 years fl 6-10 years ~ over 10 years

35

SECTION B: THE FORMS OF CUSTOMER SATISFACTION MECHANISMSBEING USED BY SERENA HOTEL

Direction 1: Please write your rating on the space before each option which corresponds to

your best choice in terms of level ofmotivation. Kindly use the scoring system below:

Score Response Mode

(1). SA= Strongly Agree, (2). A=Agree (3). N=Neutral (4) D=Disagree

(5) SD=Strongly Disagree

Forms of Customer Satisfaction Mechanisms SA A N D SD

1 There is suggestion Box service as a form of Customer Satisfaction — —

Mechanisms

2 There is customer feedback

3 Effective service delivery leads to Customer Satisfaction Mechanisms — —

4 Notification services increases customer satsfaction — —

5 A customer portai is an internal system which allows your customers to —

access their personal data6 Depending on the kind of service or product you provide, support rates vary.

7 Not only the total cost of your product or service, but also value for money — — —

and how they see this compared to the market price.

8 Take time to look into unsolicited feedback that you can find online in —

reviews, comments and social media posts to broaden your analysis.

9 The needs of the customer been answered —

There’s one good starting point for insights into customer satisfaction, its —

customer loyalty.10 Together with customer loyalty, the intent to repurchase a product or service

is an indication of customer satisfaction. —

11 Customer satisfaction can be increased by keeping an open mind towardsquestions or remarks a respondent might have, apart from the product orservice you’ve delivered.

12 When working on customer satisfaction, allocate some time specifically toyour employees, because their happiness about working for your companyshows in the way they work and enables them to deliver a higher level ofcustomer satisfaction.

36

SECTION C: THE WAYS CUSTOMER SATISFACTION AFFECTS THEDEVELOPMENT OF THE HOTEL INDUSTRY

Score Response Mode

(1). SA= Strongly Agree, (2). A=Agree

(5) SD=Strongly Disagree

(3). N=Neutral (4) D=Disagree

The ways Customer satisfaction affects the development T I I T I1 There is increased client base

2 There is increase profits margins at the organisation —

3 There is growth of the sector —

4 Increase in GDP that increase economic performance of the country — — — — —

5 An effective customer satisfaction survey reflects development — — — — —

6 Customer satisfaction forms one of the most important foundations of the — — — — —

long-term business success of an enterprise that leads to development

7 High customer satisfaction makes higher prices possible. The customer is

willing to pay more for reduced risks.

8 Content and enthusiastic customers react less sensitively to price increases. — — — — —

Just a few customers would end a long-term and fruitful relationship with a

supplier, because of a price increase of 5 %.

9 Cross-Selling consists of the marketing of similar services to a customer who — — — — —

already purchases existing products and services from the company.

10 The performance of all business ultimately depends on their success in

keeping customers - lengthening the lifetimes of their customers.

11 Building on this distinction ofboth constructs, it is here postulated — — — — —

that perceived overall quality plays a key role of customer satisfaction

12 The customer evaluates the marketer’s performance negatively but tries to — — — — —

initiate a change

37

13 The involvement of customers has become a key variable in consumer

C. SECTION D: CONSTRAINTS TO EFFECTIVE CUSTOMER SATISFACTION IN

SERENA HOTEL

On a scale of 1 - 5 where (1). SA= Strongly Agree, (2). A=Agree (3). N=Neutral (4)

D~’Disagree (5) SD=Strongly Disagree, indicate your level of agreement with the

following statements.

Constraints to effective customer satisfaction T I I ~ I1 There is increased poor Human resource capacity

2 There is limited ICT development delays online booking — — — — —

3 There poor infrastructure development

4 Political upheavals

5 Failure to resolve a complaint at first point of contact — — — —

6 There is inability to connect the dots and wants of customers — — — — —

7 Not defining what constitutes a ‘ complaint’ effectively

8 Restricting the channel that customers can use to make contact

9 Introducing the human touch where needed

10There is limited commitment within the hotel industry

12 There is poor team work due to some of the more complicated customer — — — — —

service issues imply a second interaction.

Thanks for cooperation

End

38

APPENDIX 11. INTERVIEW GUIDE

1. What are some of the forms of Customer Service undertaken in your organisation?

2. Do you think the forms of Customer Service employed in your organisation have

played any role towards the development of the hotel industry?

3. Give reasons for your answer in 8 above.

4. Does customer satisfaction influence the development of the hotel industry?

5. If yes, specify how customer satisfaction influences the development of the hotel

industry?

6. Have you ever faced a challenge pursuing customer satisfaction?

7. If yes, what are the constraints to effective customer satisfaction?

8. How have the mentioned challenges affected the performance of Serena Hotel?

9. What are the various forms of Customer satisfaction mechanisms being used by the

hotel industry?

10. Through which ways has Customer satisfaction affected the development of the hotel

industry?

11. What are the constraints to effective Customer satisfaction in the hotel industry?

***Thank you for our cooperation***

39

~00Q000 I~ii~c~co~

UI~

C

-~ -~

~co~

1~I~1~ ~

J~

N

—Wa

~

I! ~m~ 0

0 ~“g ~0 ~

~ S0 ~~

za ~~ 40 ~D

R

0

-~

~h -~ -~ -~ -~ -~ h ~ -~ ~ -~ ~

~

~ ~%3

-~ -~ -~ -‘ -~ -~ ~ -~ -~ -~

~~4

0

b