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CHAPTER 1: RESEARCH OVERVIEW

1.0 Introduction

Chapter one is an introduction to the entire research of study framework and


demonstrates the research problems. Within chapter one, it offers a general review on
study perspective as well as expressed the research problem. This chapter has discovered
the perceived services quality, perceived value, brand image and price fairness that could
affect the customer satisfaction towards hotel industry. Within the research, the problem
statement is stating the fundamental concept of the research driving to create an
understandable clarification towards the research objectives that should be accomplished
as well as having the research question to be responded. Additionally, researcher also
illustrated the hypotheses to be validated and explicate the value and usefulness of
implementing this study. In the outcome of this chapter, chapter layout as well as
conclusion is included.

1.1 Research Background


1.1.1 Hotel Industry

Hotel industry delivers to their customer with two fundamental things which are
accommodation and food. Hotel is refers to a hospitality industry which have a
diverse variety of services industries which involving restaurants, gym centre,
swimming pools and much more recreational facilities. Hotel is often considered

as a Home away from home. According to Cambridge dictionary, a hotel is


refer to a building where we pay to acquire a room to accommodate and place to
have our meals, or with further meanings, hotel can be an establishment which
offers paid lodging on a short-term period. (Grini, July 2007) Besides, hotel
delivers a full variety of services and accommodations, for instance, hotel room
suites, dining restaurants, banquet hall and facilities as well as entertainment
facilities. It can be explained as an industry whose have a primary goal to gain
profits for the hoteliers. Hotel provides room suites, banquets, and dining
restaurants, moreover, hotel also may gain revenues through telephone call
services, laundry services, recreational as well as entertainment activities which
deliver to their customers. (M.Sheela, 2007) The hotel industry is about to have
encountered significant development, as a consequence of the prosperous
travelling as well as tourism invest. Besides that, the hotel industry will proceed
to provide numerous business prospects to use on the nation and corporations as
well. Its devotion concerning the industry is most constructive, as well as has
aroused numerous hotel employees to attempt more challenging with regard to
boosting the overall quality of their service. On account of the consumer oriented
nature associated with this field, it is extremely important for hotel employees to
persistently look for innovative techniques to increase their offerings, along with
plan out techniques to furnish notable experience for their customers. They tend to
have to manage a fragile stability between addressing to the utmost fundamental
preferences of their visitors, while in the mean time, indulging each component
with most of the luxuries accessible, hence making their hotel stick a satisfying
and remarkable practical experience. And hence, it is vital with regards to hotel
managers to maintain up-to-date with the existing and forthcoming requirements
along the ever-evolving industry, in addition to improve with the necessities of
progressively gorgeous hotel visitors. Hotel managers are required to develop
exceptional, specific assistance features to go over the hotel guests expectations;
modifying their resources towards a prosperous company image as well as
generating customer loyalty.

1.2 Problem Statement

For instance, most of the service businesses are attempting to optimize their service
quality to be able to make customers fulfilled along with their services, particularly the
hotel industry. Hotel managers at this moment place emphasis much more on the quality
standards as a way to fulfill the fundamental requirements and moreover satisfaction of
the potential customers. The greater amount of fulfilled the clients are, the greater amount
of possibly they will be come back or alternatively expand their stay in the hotel.
Nowadays, hotel potential visitors apparently have substantially high expectations and
sometimes desires for superb service. The hotel has enhanced their competitiveness and
yet as a substitute for displaying simply a fine hotel room to attract potential customers,
they provide with high quality workforce, as a fine etiquette also. Customer satisfaction
happens to be the top-notch preference for employers taking over their competitors.
Among the hotel sector, hotel employees are cover from top management workforce to
front line employees such as: receptionists, customer service care team, front cashiers and
housekeepers. Hotel employees are essentially a supporting portion of deciding customer
satisfaction in the event that determining to return back to the hotel, to advocate the hotel,
as well as presenting loyalty to hotel industry.

As stated above, perceived service quality, perceived value, price fairness as well as
brand image seems as the instinctive assessment in which hotel clients put together to
review their satisfaction with regards to a service together with the view of exactly how
service has actually been operated. For instance, the concept that front office services
possess the characteristics that are generally viewed as most essential, significantly in
creating the subsequent opinions of service quality; tangibility (how well the hotel staff
are dressed up); reliability(capability to find a solution for issues met by visitors);
responsiveness(comfort of arranging the accommodation and promptness of check-in and
check-out procedure); assurance(safety and security of visitors); and empathy(supportive

and personalized affection). In hotel industry, assurance components in which includes


safety and security of visitors according to initially, and the second is reliability factors
and which can include hotels undertake task which could be assured to visitors on getting
rid of hassles found by visitors. By concentrating on these variables, hotel industries are
expected to accomplish satisfactory levels of fulfillment.

Customers are more likely to select the hotel which can delivers them the highest level of
satisfaction. Past studies that have been implemented for the evaluation and assessment
of service quality with the utilization of SERVQUAL and SERVPERF within service
industry. However, there are only few empirical studies in hotel and tourism sector which
evaluate the relationship between perceived service quality, perceived value, brand
image, price fairness and customer satisfaction. With this research, it is aimed to evaluate
the degree of perceived service quality, perceived value, price fairness and brand image in
predicting customer satisfaction in hotel industry. Therefore, the research is performed as
a way to determine which variables between perceived service quality, perceived value,
price fairness and brand image contains the most significant when customers choose the
hotel industry.

1.3 Research Objective


The primary objective of this research is to fulfill the previously discussed matter in the
problem statement. As stated by the research concern, the subsequent objectives are
acknowledged as well as the main objective to fulfill through this research. In an effort to
gain more data to accomplish the objective of this research researchers have perform
literature review to comprehend the thought of each individual variable within this
research.

1.3.1 General Objective


The purpose of this research will be to enlarge the growing research in the
concept of perceived services quality, perceived value, price fairness and brand
image influence the customer satisfaction towards hotel industry. A deficient
services quality will contribute to a reduced measure of customer satisfaction
wherein arise negative practices for instance unfavorable mouth-of-word,
possibility to switch hotel and so forth. Consequently the researcher would like to
discover which measurements of perceived services quality, value and brand
image in the hotel industry are expected to highlight in an effort to improve the
hotel customer satisfaction. It attempts to identify whether aspects (perceived
value, perceived service quality, price fairness, and brand image) are able to
influence the customer satisfaction towards hotel industry.

1.3.2 Specific Objective

1. To identify the main significant attributes that impact on customer


satisfaction in hotel industry.
2. To study the significant relationship between perceived value and
customer satisfaction in hotel industry.
3. To explore the significant relationship between perceived service quality
and customer satisfaction in hotel industry.
4. To identify the significant relationship between brand image and customer
satisfaction in hotel industry.
5. To discover the significant relationship between price fairness and
customer satisfaction in hotel industry.

1.4 Research Questions

Dictated by problems which have been observed within problem statement result in
compose the objectives of this research. As a way to perform this research, researcher has
formed couple of questions for instance:
1. What are the main significant aspects that have impact on customer satisfaction in
hotel industry?
2. Is there any significant relationship between perceived value and customer
satisfaction in hotel industry?
3. Is there any significant relationship between perceived service quality and
customer satisfaction in hotel industry?
4. Is there any significant relationship between brand image and customer
satisfaction in hotel industry?
5. Is there any significant relationship between price fairness and customer
satisfaction in hotel industry?

1.5 Hypothesis of the Study


Within this research, customer satisfaction is our dependent variable. On the other side,
perceived service quality, perceived value, price fairness and brand image will be our
independent variables. As soon as identify the independent and dependent variables
which associated with this study and formed couple of research questions, these results in
develop couple of hypotheses of the research study which include:
1. Determine the relationship between perceived value and customer satisfaction in
hotel industry.

H1: There is a significant relationship between perceived value and


customer satisfaction in hotel industry.
2. Determine the relationship between perceived service quality and customer
satisfaction in hotel industry.
H1: There is a significant relationship between perceived service quality
and customer satisfaction in hotel industry.
3. Determine the relationship between brand image and customer satisfaction in
hotel industry.
H1: There is a relationship between brand image and customer satisfaction
in hotel industry.
4. Determine the relationship between price fairness and customer satisfaction in
hotel industry.
H1: There is a significant relationship between price fairness and customer
satisfaction in hotel industry.

1.6 Significance of Study

The study will be significant towards the service industry given that it will lead to further
knowledge of essential service quality, perceived value, brand image and price fairness
measures in hotel industry. Dedication and significance of this research will be to deliver
us an improved knowledge of aspects which can have influences on customer
satisfaction. As stated, this study may deal distinctively with hotel services. The objective
of this study would be to observe the factors (perceived service quality, value, price
fairness and brand image) which will influence customer satisfaction in hotel industry.
This could contribute to the comprehension of a hotel service and could offers
suggestions for the development of the service. This study also is significant to hotel

industry. In accordance to the research, it is crucial for hotel to preserve its services
quality and price of the hotel facilities as well as getting ready to accomplish positive
feedback from customer to promote the hotel image. The analysis of the study will assist
to evaluate what hotel customers desire in their service experience. It certainly will also
assist employee management as it could predict obstacles on quality service, value, price
fairness and brand image perceived by customer, which may typically be correlated with
the service delivery of employees. Hence, better understanding on what triggers customer
satisfaction will assist the hotel industry to improve their customer retention as well as
revenue. Nonetheless, it is beneficial for hotel to distinguish their customer preferences
and demands.
Furthermore, there is limited empirical study which evaluated these concepts within a
single framework, thus the complex interrelationships between these concepts have not
been completely understood and assessed. Yet, former studies evaluated the dependent
variable (customer satisfaction) on the service quality; its influence on the relationship
between brand image or perceived value as well as price fairness has been neglected. As a
result, this research is to permit researcher to examine these concepts in a single
framework and let hotel industry to discover the most significant factor that have impact
on customer satisfaction.
In a nutshell, the research concentrate on post-consumption behaviour, thus customers
whom have previous experience with hotel industry may benefit from this research
because it improves customers knowledge towards the service level, brand image, price
fairness and value that hotel industry may delivers. By executed this research, it may
assist hotel industry to discover the most effective resolution to work out the problem
which may arise and offer the most effective services to accomplish customers
satisfaction.

1.7 Chapter Layout

The body of this research project comes with five chapters. Each one of the chapters will
relate to one another to accomplish the entire research. The chapters concerned are shown
as below:

1.7.1 Chapter One: Research Overview

Chapter one is the introductory chapter that gives a brief overview of the
complete research project as well as understandable details on exactly what the
research is referring to. This chapter outlines the research environment together
with the problem statement of the research. Moreover, it highlights the research
objective to be achieved, the research questions to be responded as well as
hypotheses to be validated. The significance of the study is likewise described in
this chapter. The chapter layout and conclusion will also be discussed within
chapter one.

1.7.2 Chapter Two: Literature Review

Chapter two involves complete and comprehensive review of information which


extracted from preceding researches which are present on the study subjects. This
chapter is to generate a theoretical foundation regarding the research by retrieving
applicable journals and articles to distinguish research concerns which are worth
exploring. Therefore, this chapter also gives the basis to design a helpful
theoretical framework to pursue with further analysis and hypotheses testing.

1.7.3 Chapter Three: Methodology

Chapter three will be focus on the explanation of methodology which


concentrated on the way in which research is performed with the help of research
design, data collection method, sampling design, operational definitions of
constructs, data processing, measurement scales, as well as methods of data
analysis.

1.7.4 Chapter Four: Data Analysis

Chapter four is the essential component which is utilized to execute research


result having the assist of Statistical Package For Social Science (SPSS). The
researcher will performed the outcome which driven by primary date acquire from
questionnaires. The result carried out will be summarized in tables and charts in
order to make it more convenient for the researcher to clarify it.

1.7.5 Chapter Five: Conclusion

Chapter five will be the final part of the research project in which all the
necessary outcomes will be emerged and evaluated. In addition to that, the
researcher provides a summary on statistical analysis and the discussion on the
major findings. Moreover, it provides the implications as well as limitations of the
study and recommendations for future research. There will be a conclusion of the
whole research in the final sections.

1.8 Conclusion

In a nutshell, chapter one consists with the groundwork of the research. Customer
satisfaction has performed a vital role within the service based enterprise like hotel
industry. The extent of satisfaction of a consumer is extremely reliable to the hotel
services they anticipated. Within chapter two, the researcher is going to demonstrate
further in which concerning the perceived service quality, value, price fairness and brand
image which influences on customer satisfaction by facilitating more valuable framework
and theories. Furthermore, the subsequent chapter will comprised with literature review
from preceding studies which symbolize the comprehension on variables. For instance,
the researcher will also focus on each of the variables and the proposed conceptual
framework.

CHAPTER 2: LITERATURE REVIEW

2.0 Introduction

Literature review is a vital chapter inside a research in which the researcher assessed
others work and to discover the information acquired which is founded on text for
instance journals, articles as well as internet to evaluate the critical elements of present
knowledge throughout the particular topic. For instance, this chapter strives to offer the
review of prior researches that associated with this research topic in which is the
relationship between these independent variables (perceived value, perceived service
quality, price fairness, and brand image) and dependent variable (customer satisfaction).
Within this chapter, a great number of empirical researches will be assess as a way to
estimate the applicable variables along with support the reliability of this theoretical
model from literature review that correlated between overall customer satisfaction as well
as the independent variables that are perceived value, perceived service quality, price
fairness and brand image. A big number of prior researches formed a hypothesis to
discover the validity of theory drawn up. To put it briefly, this chapter information
gathered is all secondary sources. This chapter is separated into four parts which are
review of literature, review of applicable theoretical framework, proposed conceptual
framework and hypothesis formation.

Within the research, the author would like to determine that there are several attributes
could influence the overall customer satisfaction. The objective of the research is to
evaluate the aspects of perceived service quality, perceived value, price fairness and

brand image as well as their relationships with customer satisfaction towards hotel
industry.

2.1 Definition of Terms

The following are terms utilized to describe for the objective of the research study.

2.1.1 Perceived Value

Perceived value can be refer to a customers opinion towards a product or


services value in which it brings for them. However, it may have little or no
depending with the products market price but depend on the products capability
and availability to meet the customers demands and wants.

Besides, perceived value is expressed as the outcome of the individual


comparison between perceived overall benefits as well as the perceived expenses
which bought by the customers. Moreover, customer perceived value is defined as
the customers overall evaluation of the utilization of product or service, with
regards to the perceptions of what is obtained. (Zeithaml V. , 1988)

2.1.2 Perceived Service Quality

Perceived service quality can be refer to a degree to which a product or service


offers customer necessities as well as how can these necessities and demands can
be met.
Besides, service quality also can be determined as the customers judgment
regarding the overall performance of a service provider. As stated by Oliver
(1993), perceived service quality is assessed by the actual performance of the
service which particular service ascribes within the specific aspect. (Oliver R. L.,
1993)

2.1.3 Brand Image

Brand image can be defined as the perceptions towards a brand which reflected as
associations existing within the experience of consumer. It can be developed and
emerged over time through advertising programs with a consistent and reputed
theme and objective, as well as is authenticated and accepted through the
consumers experience towards the brand. Besides, brand image is also referred to
the customer responses to brand name, or perception and also represented the
product and service quality which proposed by Magid, J. M., Anthony, D. &
Dena, S., 2006.

2.1.4 Price Fairness

Price fairness can be referred to a measurement to develop customers willingness


to purchase the companys products or services based on the feeling that the price
of the products or services are worth as compared to their quality. The price to be
paid will be defined by customer according to their spending limits. Beside, price

fairness can also define as the consumers assessments of whether a service


providers price is reasonable and acceptable. (Herrmann, A., Xia, L., Monroe,
K.B., and Huber. F., 2007)

2.1.5 Customer Satisfaction

Satisfaction is defined by different researches in different manners. Customer


satisfaction is known as a core aspect in formulation of customers demands for
future purchase. ( Vikas Mittal & Wagner A. Kamakura, 2001) It can be said that
it is a measure that a customer views in which an individual, firm or organization
has adequately delivered a product or service that reaches the customers
requirements among the context in which the customer is knowledgeable with and
making use of the product or service.
Furthermore, satisfaction also can be said that the overall customer behavior
towards a service provider, and an emotional response to the distinction between
what customers look for and what they obtain, with regards to the achievement of
some requirements, objectives or demands. (Hansemark, O.C. & Albinson, M.,
2004)

2.2 Review of Literature

2.2.1 Perceived Value

Perceived value is the outcomes or advantage which customer receives according


to the total expenses which consist of the price paid and costs which related to
purchase. Besides, value is the discrepancy between perceived benefits as well as
costs. Yet, what build up the value may be highly personal, and also varied from
one customer to another. (Zeithaml V. A., 1981) Moreover, service provided value
to customer while the concept of customer perceived value which customer
perceived is individual and subjective. (Parasuraman A, Zeithaml V and Berry
L.L, 1988)
Furthermore, the objective of customer perceived value evaluation is to discover,
evaluate and perform empirically measureable the value in which companies or
firms deliver for their customers as well as connect these inspiration to future
marketing planning. (Huaniqin Li & Jinhwan Hong, September 2013) The level
of perceived value can be assessed by utilizing two measurements. The primary
one which assess perceived value as a construct which consists of two sections,
first is benefits received when secondary factors is the sacrifices contributed.
(Cronin Jr. J.J. , Brady M.K. & Hult G.T.M., 2000) The get aspects (benefit) of
perceived value involve intrinsic dimensions (e.g. how the purchase makes the
customer perceives) and extrinsic dimensions (e.g. the reputation and condition of
the product/service), whereas the give aspects (sacrifice) of perceived value
involve monetary cost and non-monetary cost (e.g. energy, time and effort). (Lien
C.H., Wen M.J., Wu C.C., 2011) Other than that, the benefits attributes involve
the perceived quality of service as well as association of psychological benefits,
which sacrifices attribute consists of monetary and non-monetary aspects for
instance, risk, time as well as convenience. (Yeh, Y., 2013) In another way, second
measurement states that customer perceived value as a multidimensional which
assessed perceived value as a multidimensional construct which involves
emotional (the value perceived from the customers feelings that a product or
service generates), economic (the value perceived from the product or services in

comparison to the monetary cost of its), and social (the value perceived from the
products or services ability to increase social self-concept). (Sweeney, J. C., &
Soutar, G. N., 2001)

Customer satisfaction is determined as the assessment of a customers overall


experience with regards to a product or services which have been utilized. (Li, R.
X., & Petrick, J. F., 2010) Besides, customer perceived value also is associated
with customer satisfaction within business industries. (Omar, N.A., Alam, S.S.,
Aziz, N.A., Nazri, M.A., 2011) According to Patterson and Spreng (1997), there
are a positive and direct relationship between customer satisfaction and perceived
value. (Patterson P. G. & Spreng, R. A., 1997) Customer would like to consider
whether or not they received value for money within the decision making in
which to return to the service provide or not. Moreover, customer satisfaction may
be according to service experience which also known as service quality
dimensions as well as that perceived value is more essential with the future
intentions. In supporting to above statement, Lin, 2003 agreed that the level of
customers perceived value have an influence to customer satisfaction and thus
result to future purchase intentions. (Lin, 2003) Other than that, perceived value is
also one of the essential components to assess customer satisfaction and positive
behavioural intentions. (Cronin, J. J., Brady, M. K., & Hult, G. T. M., 2000)
Based on the research done by Ryu, Han and Kim (2008), the general restaurant
image was interrelates with the customer perceived value, and thus directly
affecting customer satisfaction. (Ryu, K., Han, H., & Kim, T., 2008) However, a
customers perceived value is according to their judgment and assessment after
the utilization of a product and service. When customers have a positive judgment
by utilizing hotel services, it can thus result in positive customer satisfaction. In
addition, while customer satisfaction can result in customer retention, which can
also result to deliver positive growth in market share as well as producing positive
customer value within hotel industry. (Naumann, E., & Giel, K., 1995)

2.2.2 Perceived Service Quality

Perceived service quality can be defined as the overall experience of customers


towards the service which delivered by the organization and firm. (Bitner, M.J.
and Hubbert, A.R., 1994) The judgment of the outcome by customer thinks that a
service provider should deliver for them which according to his or her expectation
as well as the actual performance of the service. (Parasuraman A, Zeithaml V and
Berry L.L, 1988) It can be say that customers are the people who judge the
service quality as well as measure service quality in terms of comparing what they
are expected and also what they perceive to achieve. According to Zeithaml V. A.,
Bitner M. J., and Gremler D. D., (2006), explained a ten dimension model in
order to evaluate service quality. Yet, then ten dimensions of service quality has
minimized to five dimensions, which expressed as SERVQUAL model that has
been utilized in most service industries. The five dimensions of service quality
which are assurance (the perception of services provider to make sure that service
are provided in the form of credibility as well as security), empathy (how the
organization cares and delivers individualized attention to their customer, in order
to influence the customers have the feelings that extra valued and being special),
reliability (how the company are conducting as well as finishing their guaranteed
service, quality as well as accuracy in the given set requirements which between
the company and the customer), responsiveness (the company assists its
customers in order to deliver them with a superb, quality as well as instant
service) and tangibles (the quality of physical surroundings as well as facilities,
equipment, and also the communication manner).

Yet, it also outlined that customer satisfaction may be influenced by the service
quality of the organization. The service quality is the ascendant of customer
satisfaction which stated by Oliver, (1993) as well as avocated by the study of

Bennett, R., & Barkensjo, A., (2005) which proposed that the higher the perceived
service quality, the higher the level of customer satisfaction. (Oliver, 1993;
Bennett, R., & Barkensjo, A., 2005)

As stated by Pham (2011), enhancing service quality is an essential manner for


service firms to achieve competitive advantages over their competitors. In a
nutshell, the researcher stated that by enhancing service quality which resulting in
increasing customer satisfaction and thus achieving competitive advantages. As
stated by Pitt, Watson and Kavan (1995), the approach to evaluate satisfaction is
via determining the relationship between satisfaction and service quality. (Pitt, L.
F., Watson, R. T., & Kavan, C. B., 1995) The service quality has an impact on
customer satisfaction within hotel indsutry which supported by Bolton, R.N. &
Drew, J.H., March (1991) Hence, hotel enterprises who can improve service
quality will thus asquire higher customer satisfaction. Besides, Bitner, M.J. and
Hubbert, A.R., (1994) have proposed that evaluate the significance of dimensions
that influencing the customer perceived quality in hotel industry which presents
that the service quality dimensions are positively related to perceived quality to
the situation which customer satisfaction is diverse based on the service delivered
by hotel industry. (Bitner, M.J. and Hubbert, A.R., 1994)

On the other way, it also refers to the more accurate the time that hotel industry
had delivered the service to the customers, the customer satisfaction will become
higher. Ruyter and Wetzels (1998) proposed that perceived service quality has a
direct impact on the customer choices and their willingness to suggest the
product or service to other customers. (Ruyter, K.D.,& Wetzels, M., 1998)

Besides, the research shows that there is a positive relationship between service
quality and customer satisfaction. As stated by Jajaee, S.M. and Sheikh Ahmad,

B.F., (2012), nowadays in marketing perception, customer impression plays an


essential role within hotel industry, as well as developed economies are turning
into more service oriented. (Jajaee, S.M. and Sheikh Ahmad, B.F., 2012) Thus,
service quality which increased will straightly influence to higher customer
satisfaction level. In a conclusion, the research revealed that there is a positive
relationship between service quality as well as customer satisfaction.

2.1.3 Brand Image

Brand image can be an asset and liability in which correlated with brand name
that the asset and liability may boost or decrease the value by delivering products
and services to their potential customers. (Magid, J. M., Anthony, D. & Dena, S.,
2006) In accordance with this theory, these associations are evolved from a
customers experience towards a service. For instance, customers make personal
judgments through the way of comparing a companys performance as well as
contribution with their prior individual experience, and thus, acquiring new
associations regarding to the company. (Martinez, E., & Pina. J. , 2003)

Many studies have manifested that service quality has a positive and direct effect
towards brand image. (Kayaman, R., & Arasli, H. , 2007; Brodie, R. J., Whittome,
J. R. M., & Brush, G. J. , 2009) Brand image is determined as an essential
marketing element for every company. Due to the reason that it may affect the
customer perception on a company and thus directly influence customer
satisfaction, which supported by Martensen, A., Grnholdt, L., & Kristensen, K.,
(2000) and thus proposed that the brand image do have a direct influence on
customer satisfaction. Wu (2011) also stated that brand image is an essential
factor that has influences on customer satisfaction. (Wu, C. C. , 2011) Other than
that, satisfaction appears in the situation that individual expectations are achieved,
and hence, it can be reasonable to expect that a positive image as well as

expectation of an experience which prior to consumption are achieved would lead


to customer satisfaction. (Minkiewicz, J.,Evans, J., Bridson, K. and Mavondo, F.,
2011) In contrary, if the customer is likely to be dissatisfied if the positive
corporate image negatively affects satisfaction, in which the image has developed
unrealistic expectation for customers. (Minkiewicz, J.,Evans, J., Bridson, K. and
Mavondo, F., 2011) Additionally, brand image can affect customers perception
towards the companys products and services. (Zeithaml, V. A., & Bitner, M. J.,
1996) In supporting to that, brand image can affect a customers preference of
company in a condition that service factors are hard to measure. (Andreassen, T.
W., & Lindestad, B., 1998) Other that that, brand image is also to produce a chain
reaction on satisfaction judgments and behaviour towards the service industry.
(Patterson P. G. & Spreng, R. A., 1997) In addition, it can be say that a distinct
brand image is an essential marketing approach for a hotel firm to compete with
their competitors, and thus influence on customer satisfaction towards hotel
industry provided. (Zeithaml, V. A., & Bitner, M. J., 1996) Hence, the more likely
positive perception towards a companys brand image, the more likely the
consumers will think that the service delivered by the company are having better
quality and performance as well. (Dowling, 1994) Thus, a customer perceived
good brand image delivered by the company, they will perceived high customer
satisfaction towards the company. Based on the statement stated above, it can
prove that there is a positive relationship between brand image and customers
satisfaction.

2.1.4 Price Fairness

Price fairness can be defined as the maximum price which customers are able to
pay for the product or service, and obtain the benefits in which the companys
product and service can deliver. For instance, it can be the major attribute of
customer choice in which the cost incurred in purchase product or service. (R.T.
Rust, and R.L. Oliver, 1994) However, the amount that customer willing to pay is

based on their demands, their expectation and how they evaluate on the quality of
products and services. (J.L., Heskett, E.W. Sasser, and L.A. Schlesinger, 1997) If
consumers have no purchase experience of the product and service, they often
will make a purchase decision according to their expectation, their perception of
price and quality of the product and service. (W.B. Dodds, K.B. Monroe, and D.
Grewal, 1991)

Several researches have suggested that satisfaction is significantly having


relationship with customers perceptions towards price fairness. (Huffman, C. &
Cain, L.B., 2001; Bowman, D. & Narayandas, D., 2001) Satisfaction can be a
function of price, in which perceived price fairness may contribute as a
determinant of customer satisfaction. (Voss, G.B., Parasuraman, A. and Grewal,
D., 1998) According to Gustafsson, A., Johnson, M.D., and Roos, I., (2005) price
can be a vital attribute in customer satisfaction due to the reason that the charges
of the product or service is directly influence the customer, hence, if the price is
affordable that the customers feel satisfied, the customer will repurchase the
product in future. (Gustafsson, A., Johnson, M.D., and Roos, I., 2005)
Furthermore, price can be referred to a vital component within marketing mix as
the role of product and service price within the level of customer satisfaction.
(Herrmann, A., Xia, L., Monroe, K.B. and Huber, F., 2007) According to Oliver
and Swan (1989) stated that the customers perceptions towards satisfaction was
relevant to the quality of the products and services which correlated to the price
paid. (Oliver, R.L. and Swan, J.E., 1989) Price fairness may be result to customer
satisfaction as the price can be an essential element in which customer are paying
for the specific product or service they feel that are avail. (Ti Bei, L & Ching
Chiao,Y., 2001) However, the result also proposed that when an insufficient
outcome according to the perceived price performance appeared, there will be
negative impacts which influence on customer satisfaction judgments. (Voss,
G.B., Parasuraman, A. and Grewal, D., 1998) Based on the statement stated
above, it can prove that there is a positive relationship between price fairness and

customers satisfaction. It can be say that if customer feels that their sacrifices
(monetary value) to obtain the product or service are worthwhile, they may not
repurchase even that they are feel satisfy with the product or services quality.
Hence, in order to increase customer satisfaction, the service provider should
concentrate on the charges and price of the products or services which they
offered to their customers.

2.1.5 Customer Satisfaction


Customer satisfaction can be an essential role for company to understand and thus
satisfy their potential customers regarding to what they demand and need. It can
be said that satisfaction can be achieved on account of what has been expected. In
case the supply of a business was in accordance with desires of customers,
typically they would be satisfied. Gerpott, Rams and Schindler (2001) suggests
that the level of high as well as low satisfaction is dependent on the measure of
supply that reaches the degree of customer expectation. (Gerpott, T.J., Rams, W.,
& Schindler, A., 2001) Besides, satisfaction also is driven by customers
experience of both equally communicate with the organization and personal
implications. Some researchers describe a satisfied customer throughout the
private area as one who attains significant added value to his or her bottom linea description that may utilize as much to public service providers. (Cengiz, 2010)

The level of satisfaction is relevant to the service quality will increase when
service which can be delivered on time by organizations and firms. (Glaveli, N.,
Petridou, E., Liassides, C., & Spathis, C., 2006) There is a situation when 161
firms enhance their services quality, will thus decrease their customers
unfavorable intentions while favorable behavioral intentions tend to be increased.
(Zeithaml, V. A., Berry, L. L. & Parasuraman, A., 1996) As the result, customer
emotional response, experience and feeling can be an attributes to assess the

satisfaction and dissatisfaction of the service delivered. It can be said that if the
perceived product or service does not reach to customer expectation, the customer
will be thus dissatisfied. (G.A. Churchill & C. Surprenant, 1982, & Oliver R.,
1980) Other than that, the service quality which influences the increased market
share as well as continual sales and thus contributes to customer loyalty. (Buzzell,
R.D. & Gale, B.T., 1987)

Furthermore, the level of satisfaction or dissatisfaction is obtained from previous


service experiences which customers perceived, and may also in turn reflect to
customers repurchase intentions. (McGuire, 1999) Therefore, customer
satisfaction is rated highly as a strategic for company to fulfill, because it may
influence customer retention and companys profit in a direct manner. It can be an
essential factor in service delivery due to the reason that the understanding and
satisfying customers demand can trigger and increase the companys market
share and profit as well. (Barsky, 1992) In supporting to that, customer
satisfaction has an influence on customers future repeat purchase intentions and
the customers will recommend their purchase experience to other consumers.
(T.O. Jones, & E.W. Sasser, 1995)

2.2 Review of Relevant Theoretical Models

2.2.1 The Relationship between Perceived Value, Perceived


Service Quality, Brand Image, Price Fairness and Customer
Satisfaction.
Table 2.1: The Summary of the Relationship between Independent Variables (IV)
and Dependent Variable (DV)
IV1

Items

Description
Perceived value has the positive

Perceived Value

relationship

with

Citation
Li, R. X., & Petrick, J. F.,

(2010)
Omar, N.A., Alam, S.S.,

customer

satisfaction.
This statement was supported by

Aziz, N.A., Nazri, M.A.,

several authors.

(2011)
Patterson P. G. & Spreng,

R. A., (1997)
Lin, (2003)
Cronin, J. J., Brady, M.
K., & Hult, G. T. M.,

(2000)
Ryu, K., Han, H., & Kim,

T., (2008)
Naumann, E., & Giel, K.,
(1995)

IV2

Perceived service quality has the

Perceived service positive


quality

relationship

Bitner, M.J. and Hubbert,

A.R., (1994)
Parasuraman A, Zeithaml

V and Berry L.L, (1988)


Zeithaml V. A., Bitner M.

with

customer satisfaction.
This statement was supported by
several authors.

J., and Gremler D. D.,

(2006)
Oliver, (1993)
Bennett, R., & Barkensjo,

A., (2005)
Pham (2011)
Pitt, L. F., Watson, R. T.,

& Kavan, C. B., (1995)


Bolton, R.N. & Drew,

J.H., March (1991)


Bitner, M.J. and Hubbert,

A.R., (1994)
Ruyter, K.D.,& Wetzels,

M., (1998)
Jajaee, S.M. and Sheikh
Ahmad, B.F., (2012)

IV3

Brand image has the positive

Brand image

relationship

with

Kayaman, R., & Arasli, H.

, (2007)
Brodie, R. J., Whittome, J.

customer

satisfaction.

R. M., & Brush, G. J. ,

This statement was supported by


several authors.

(2009)
Martensen, A., Grnholdt,
L., & Kristensen, K.,

(2000)
Wu, (2011)
Minkiewicz, J.,Evans, J.,
Bridson, K. and Mavondo,

F., (2011)
Zeithaml, V. A., & Bitner,

M. J., (1996)
Andreassen, T. W., &

Lindestad, B., (1998)


Patterson P. G. & Spreng,
R. A., (1997)

IV4

Price fairness has the positive

Price fairness

relationship

with

Dowling, (1994)

Huffman, C. & Cain, L.B.,

(2001)
Bowman, D. &

Narayandas, D., (2001)


Voss, G.B., Parasuraman,

A. and Grewal, D., (1998)


Gustafsson, A., Johnson,

M.D., and Roos, I., (2005)


Herrmann, A., Xia, L.,

customer

satisfaction.
This statement was supported by
several authors.

Monroe, K.B. and Huber,

F., (2007)
Oliver, R.L. and Swan,

J.E., (1989)
Ti Bei, L & Ching

Chiao,Y., (2001)
Voss, G.B., Parasuraman,
A. and Grewal, D., (1998)

Source: Extracted from Literature Review

2.3 Conceptual Framework


According to the review of previous research studies, the following model was
established.
Figure 2.1: Research framework for independent and dependent variables
Independent variables

Dependent variable

Perceived Value

H1

Perceived Service Quality

H2

Brand Image

H3

Price Fairness

Customer
Satisfaction

H4

Source: Extracted from Literature Review


Figure 2.1 demonstrates the proposed theoretical framework that function as foundation
of this research study. The conceptual framework are modified from the literature review,
there are three independent variables (perceived service quality, perceived value, brand
image, and price fairness) which are established to evaluate their relationship between
dependent variable (customer satisfaction). In this sense, the framework proposed that the
influence of customer satisfaction would be affected by perceived service quality,
perceived value, price fairness and brand image. This framework would be tested within
the remaining of the dissertation.

2.4 Hypothesis Development

The objective of this chapter is to discover the relative significant effect of perceived
service quality, perceived value, brand image, and price fairness towards customer
satisfaction. Through the research study, the researcher would like to implement several
variables and thus construct experiment in order to evaluate whether the variables chosen
which affect the customer satisfaction. Hence, existing evidence as well as theories is
described as follow as a way to exhibit the crucial factors of customer satisfaction within
the sample.
1. Determine the relationship between perceived value and customer satisfaction in
hotel industry.
H1: There is a significant relationship between perceived value and
customer satisfaction in hotel industry.
Customer satisfaction is determined as the assessment of a customers overall experience
with regards to a product or services which have been utilized. Thus, hotel industry have
to make sure that customers do acquire satisfactory overall experience with the utilization
of service or product which provided by hotel industry as a way to obtain high level of
customer satisfaction. One of the factors that the hotel industry encountered is to make
sure that customer acquire positive perceived values towards their hotel services
provided. However, a customers perceived value is according to their judgment and
assessment after the utilization of a product and service. When customers have a positive
judgment by utilizing hotel services, it can thus result in positive customer satisfaction. In
addition, while customer satisfaction can result in customer retention, which can also
result to deliver positive growth in market share as well as producing positive customer
value within hotel industry. As consequence, the hypotheses in which the positive
relationship between perceived value and customer satisfaction is generated in according
to studies above.

2. Determine the significant relationship between perceived service quality and


customer satisfaction in hotel industry.
H1: There is a significant relationship between perceived service quality
and customer satisfaction in hotel industry.
The task and main goal of enterprises and firms is to maintain customer relationship by
the means of offering of excellent service quality to customer. Offering efficient customer
service may assist enterprise and firm to enhance and manage customer relationship and
thus for the business to improve the market share and business growth. (Dehghan, 2006)
However, better service quality will assist the organization to reach higher market share
and gain substantial revenues. In addition, it is essential for enterprise and firm to
evaluate the five dimensions which are reliability, assurance, responsiveness, empathy
and tangibles and thus let customer evaluate based on service quality as well as result to
satisfaction. The researcher concludes that if the hotel industry delivers limited services
for instance, inadequate of hotel information will thus lead to lower customer satisfaction
whereas the hotel industry delivers full range of service for instance, adequate of hotel
information and hotel equipments will thus result to higher customer satisfaction. As a
result, the hypothese H1 was established and evaluated within the research.
3. Determine the relationship between brand image and customer satisfaction in
hotel industry.
H1: There is a significant relationship between brand image and customer
satisfaction in hotel industry.
Brand image is determined as an essential marketing element for every company. This
can be say that if customer have porsitive perception towards hotel firm and enterprise,
they will have higher satisfaction on the hotel industry firm and enterprise, whereas when
there is a negative brand image which perceived by customer, it will produce lower
customer satisfaction. For instance, hotel customer are likely to be satisfied with the hotel
services offered as well as with favourable brand image and thus will enhancing their

overall behaviour towards hotel indutstry. And hence, it is an essential task for hotel firms
to produce and deliver a distinct brand image which different from their competitors.
Furthermore, it can permits customer to remember the name of hotel firms and also to
deliver customer satisfaction which retrieved from customer who seek for better service
quality through the factor of distinct brand image. In order to meet satisfaction of
customer, hotel industry will have to deliver an influential and well-maintained brand
image. In addition, customer who have favourable brand image towards the hotel firm are
likely to trust on the hotel firm could deliver better performance of service provided. As
consequence, the hypotheses in which the positive relationship between brand image and
customer satisfaction is generated in according to studies above.
4. Determine the relationship between price fairness and customer satisfaction in
hotel industry.
H1: There is a significant relationship between price fairness and customer
satisfaction in hotel industry.
Price fairness can be the major attribute of customer choice in which the cost incurred in
purchase product or service. Besides, the amount that customer willing to pay is based on
their demands, their expectation and how they evaluate on the quality of products and
services. This implies that a positive perception will result to a positive customer
responds and behavior whereas a negative perception of perceived price fairness will also
create a negative behavior. The researcher concludes that price perceptions do affect the
customers overall satisfaction positively via the means of price fairness perceptions.
Hence, it is proposed that price fairness perception of hotel industry consumers would
affect their satisfaction with the products and services that are provided by hotel
companies. As a result, the hypothese H1 was established and evaluated within the
research.

2.5 Conclusion

In a nutshell, this chapter stated the literature of previous research studies, which
involving the definition and significant of four independent variables (perceived service
quality, perceived value, price fairness and brand image) while customer satisfaction has
the position as dependent variable. Hence, the conceptual framework and hypotheses
have been evaluated for the purpose of determine the relationship between each
independent variable and independent variable, and thus will further tested within the
following chapter.

CHAPTER THREE: METHODOLOGY

3.0 Introduction

This chapter will implement the outline of the research methodology with the use of
research design, data collection approaches, sampling design, measurement scales,
operational definitions of constructs, as well as strategies for data analysis. The
researcher demonstrates the way in which research will be continued as a way to thrive
the purpose of the complete research. The intention of this study is to discover whether
aspects (perceived value, perceived service quality, price fairness and brand image) are
able to influence the customer satisfaction towards hotel industry. Finally, the conclusion
will be constructed as a brief summary of this chapter.

3.1 Research Design

The research design serves as a fully comprehend strategy which determine the
techniques and procedures for accumulating and evaluating the required information
(Zikmund et al., 2010). It is a structure that designs the activity for the research project,
along with to assist us in addressing problems. Besides, research design happens to be
comprehensive sketch and analytical strategy of performing a research and responding to
each single research question reliably and precisely. (Kumar, 2010). Nevertheless,
research design may well be known as the fundamental for structures creation that in fact
responses to human preferences. Moreover, derived from Kothari(2004), research and

blueprint for accumulating, measuring and interpreting the results. Besides, a reliable
research design will have to approximately consists of four elements, which are the
define declaration of research problems, diverse instructions and methods applied to
assemble information, the population to be examined and techniques to be executed in
evaluating and decoding data. (Kothari, 2004)

3.1.1 Quantitative Research

The researcher applied quantitative methodology to perform the research study. In


accordance with Brigham (2010), quantitative research structure is an application
that utilizes to interpret the impact which originating from research. In addition to
that, Ting and Ping (2009) have expressed that to form a quantitative research data
can assist us to distinguish the connection between dependent and independent
variables. As stated by Zikmund et al.(2010) data is obtained through the use of
structure form, causal research form and outcomes which happen to be objective
as well as lower levels of researcher observe needed. Likewise, the research
addressed wider population and hence quantitative method is a better preference
as an alternative to qualitative method where a small sample is utilized and which
requires interview. Moreover, the quantitative research practice may contribute to
form a logistic research competently as it would be necessary to signify the
research problem. Furthermore, quantitative research has been applied to perform
the research on account of the large amount of respondents who took part where
facts are examined, as well as hypotheses is created. Within this quantitative
investigational study, the researcher is going to practice a prescribed questionnaire
to assemble statistics information which gathered from the respondents. This
quantitative research technique is applied to exhibit the dependent and
independent variable, to review the connections between those variables, in order

to establish cause-and-effect relation between dependent and independent


variables.

3.2 Data Collection Method

Data collection method is valuable for study and in fact it is useful in supporting
researcher substantially with their journey of completing the research study. Moreover,
the information gathered by researchers has got to be trustworthy and valid to the study
due to the fact that erroneous data collection can influence the outcome of the research
and in the end result in invalid results. Data collection is a substantial attribute of various
types of research. Erroneous data collection can influence the implications of research
and thus cause to void outcomes. Data can be words, numbers, statistics, graphics,
thoughts and facts. Data alone would not be determined and also to get information from
the data a person must clarify it into valuable information. There are numerous
approaches to decoding data. Within this research, the researcher work with the
questionnaire to gather the primary data along with the use of secondary data in which
extracted from online sources which are valuable for researcher to acquire important data
and information which relating to the study with different aspects. And hence, primary
and secondary methods are utilized to evaluate the data as a way to come up with a more
convincing and sophisticated understanding. Researcher acquires and determines the
primary as well as secondary data on variables to create and develop the hypotheses and
research questions by means of several methods.

3.2.1 Primary Data

Primary data collection method frequently used within the research. It is formed
and gathered by researcher particularly for the hand resources of information that
researcher have obtained, as well as estimated to acquire primary data while
operating quantitative measurement (Forshaw, 2000). Besides, it can be the
original data which has not been posted in past and the researcher can acquired
the originate reference literally. Nonetheless, the purpose of primary data
collection within the study is to acquire data that associated with the issue needed
by research objectives. Therefore, the collection of primary data serves to
researcher to distinguish the respective data of the variables (perceived service
quality, perceived value, brand image and price fairness) which have an impact on
customer satisfaction towards hotel industry. Furthermore, researcher are capable
of determine possibly the most reliable and responses of which variables are able
to achieve the most significant influence towards customer satisfaction. Within
this research, questionnaire has selected as research instrument to acquire primary
data as it is reliable and straightforward as well. Questionnaire is utilized to
quickly gather information extracted from sample respondent. The primary goal
of this research project would be to determine significant relationship between
perceived service quality, perceived value, price fairness, brand image and
customer satisfaction. Sample respondent may respond to the questionnaires in
accordance to their experience with the hotel industry. Questionnaire is
subsequently gathered back by researcher as soon as the respondents finished the
questionnaires to help prevent unavailability of data. Additionally, each
respondent is essential to spend five to fifteen minutes to complete with the paperand-pencil questionnaire. To ensure the results to be trustworthy and truthful,
researcher overseen the entire process of responding to the questionnaires. In
addition to that, through the use of paper-and-pencil questionnaire method,
respondents may seek advice from the researcher about any hesitation which
related to the questions of the questionnaires to prevent bias outcomes.
Subsequent to assemble the 300 questionnaires, it will go on to chapter four and
run result which driven by information obtained.

3.2.2 Secondary Data

Throughout the research, secondary data was acquired. The purpose of collecting
secondary data assists to enable researcher to indentify the problems as well as
what information are mandatory to be gathered for research. Secondary data is the
data which obtained from a source that was published by means of various
manners. The literature review in various researches is dependent on secondary
data which can be acquire from books, journals, as well as articles with the use of
Google, and online databases such as Proquest.

3.3 Sampling Design

Sampling can be referring to the sample selection procedure derived from the population.
Besides, sampling design can be vital for researcher to gather proper information which
derived from the proper respondents for research questions. There are five approaches of
sampling process which are outline target population, evaluate sampling frame and
sampling location, choose relevant sampling practice, establish sampling size and
implement sampling procedure. This will likely assist the researcher to distinguish the
competent target respondents to contribute the questionnaires.

3.3.1 Target Population

Target population would be the entire group of specific population attribute that
researcher would like to know more about and evaluating in order to get related
information to apply on the research. Target population would be the way in
which crucial capabilities of the population respond to the question within the

research. Within this research, the target population could be the respondents who
have accommodation experienced within hotel industry. These specific
populations has been selected due to the fact that they could have been having
interaction with hotel industry and also have significantly better understanding as
well as assessment towards the perceived service quality, perceived value, brand
image and price fairness of hotel industry. Furthermore, the age group of target
population is 18 years old and above, by which they have adequate spending
power on travelling and also hotel accommodation. Therefore, they will be the
ideal respondents to gather essential information. And hence, they are also
considered to have better understanding as well as insight towards the hotel
industrys perceived service quality, perceived value, brand image and price
fairness.

3.3.2 Sampling Frame and Sampling Location

Derived from Neil (2003), sampling is essential to indicate the complete targeted
population. Nonetheless, sampling frame typically is not relevant to be applied
within the research in accordance with Saunders, Lewis & Thornhill (2009),
mainly because non-probability approaches was selected for choosing the
sampling. The researcher will spread the questionnaire instantly for respondent
along with dialogue through face-to-face. The procedure that the researcher
applying for sampling is convenience sampling, which happens to be nonprobability sampling. And hence, there is essentially no sampling frame for the
research study. For sampling location, 300 questionnaires were randomly
distributed in Ipoh shopping malls such as Jusco Kinta City and Ipoh Parade on
account of the concentration of people and information reliability and
dependability. Moreover, questionnaires were distributed to respondents in Ipoh
KTM Terminal as there are massive amount of potential respondents and able to
deliver the researcher reliable information regarding the hotel industrys perceived

service quality, perceived value, price fairness and brand image for a resourceful
illustration regarding the level of customers satisfaction.

3.3.3 Sampling Element

For the sampling element which associated with the study is exclusively for
respondents who are 18 years old and above. The reason may be the majority of
the people in this group are working adults who have adequate purchasing power
on travelling and hotel accommodations. They have the ability to make a choice
within the hotel industry they want to accommodate. Yet another reason can be
attributed to the fact that these respondents has the capability to evaluate the
perceived service quality, perceived value, price fairness and brand image which
delivered by the hotel industry and in a position to give valuable information
regarding the hotel industry. Therefore, researcher can gather the high quality and
proper information from those respondents to implement the research whereas
people who are below 18 are not eligible to take part into the study. Within our
study, questionnaires distributed to various levels of respondents for instance
university students, professionals, parents with families as well as other
respondents with different level of income. This is due to our research will
investigate to the relationship between the perceived service quality, perceived
value, price fairness and brand image work as the core component to have
influence on the customers satisfaction.

3.3.4 Sampling Technique

Since there is no sampling frame applied to this study, researcher takes into
account to utilize non-probability sampling. This is because the non-probability
sampling is sampling technique in which the samples are piled up in a process

which all of the individuals in the population do not possess the equal possibilities
of being chosen. The researcher performs this research in the course of nonprobability sampling technique which will be convenience sampling. This is
because of the convenience sampling may be the sampling by attaining
respondent whom are conveniently accessible. (Zikmund, 2003) Within the
research, non-sampling technique was selected. Convenience sampling is amongst
the non-sampling techniques in which subjects are chosen on account of their ease
of access and nearness to the researcher. The researcher will only pick the
individuals who have the relationship with the hotel industry and questionnaire
will only distribute to the individuals. This technique is selected as it would be the
quickest and easiest approach to discover the outcome for the study. The
convenience sampling is the ideal method in which the researcher can acquire the
information instantly, convenient, economical as well as time-saving. And hence,
researcher can acquire substantial completed questionnaire and information with
low cost as well as lower level of time-consuming. Additionally, it can be viewed
as available and simple sampling as compared to other kinds of non-probability
sampling measurements. Furthermore, convenience sampling can assist to acquire
a good deal of fulfilled questionnaires instantly and affordable within constraint
time and lower incurred cost used to disseminate the questionnaires towards the
large portions of population. Nonetheless, researcher will observe the respondents
properly before disseminate questionnaire, essentially the customers who have
been accommodate in hotel industry.

3.3.5 Sampling Size

The larger the sample size, the lower the possibility of errors to generalize the
population of study. (Saunders, Lewis & Thornwill, 2009) 300 questionnaires
were distributed to individuals in Ipoh area in Perak state arbitrarily as a way to
determine the degree of customer satisfaction towards service quality of hotel
industry. Resulting from both resources and time limitations, the number of

sample size is relevant to generalizing targeted population. Besides, sample


included different income level of individuals whom have been accommodating in
hotel industry. However, 300 questionnaires are meted out to individual when it
comes to the reason to prevent some of the questionnaire might not be usable to
make use for instance, questionnaire might not be able to retrieved from some of
the respondents or the possibility that respondent are not completely respond to
the questions within the questionnaire. However, there are only 210 sets
questionnaires were able to collect back with complete and proper selection which
derived from those respondents. Another 90 sets of questionnaires was unable to
collect data due to incomplete information and lost data required. Preceding the
actual questionnaire, the pilot test was performed by 30 respondents in an effort to
amend any issues derived from the questions within the questionnaires.

3.4 Research Instrument

Within this study, the research instrument which the researcher applied in order to
compile data required is self-administered questionnaire. The questionnaire is a structured
set of question for attaining data which given by a large pool of respondents.
Furthermore, questionnaire is utilized instead of other various instrument approaches due
to the fact that it can be the faster technique, convenient and low cost as compared to
other techniques to assemble data. The questionnaire was created dictated by literature
review as well as will also clarify within the first page of the questionnaire in which the
information which delivered by the respondent will certainly be keep with private and
confidential condition. Nonetheless, researcher can lead and clarify the questionnaire to
the respondents through face-to-face disseminate the questionnaire to respondents, and
thus, the respondents are not confuse to the questionnaire. Additionally, questionnaire
was developed in English language as it would be the international language as well as
can be considered as well-known language that respondents applied to interact with and
comprehend the questions of questionnaire.

3.4.1 Questionnaire Design

The procedure of developing questionnaire is comparatively significant. It must


be systematically constructed with a purpose to acquire the information
proficiently. Besides, English language has been applied in developing the
questionnaire within the research mainly because it is known as an ideal language
to interact and communicate effectively with the respondents. The questionnaire
are constructed within printed form by means of ease to use and convenient for
distribution to the respondents. The questionnaire is separated into three sections.

3.4.1.1 Section A

In Section A, it was constructed with 3 questions that could be the basic


information about the customers staying experience. Thus, the
respondents are necessary to choose the option which best represent them.

3.4.1.2 Section B

In Section B, the questions of questionnaire are being developed which


associated with each of the independent variables. It contains of 20
independent variables questions in order to perform an investigation
regarding the respondents on which of the attributes influenced on the
customer satisfaction towards hotel industry. There are four independent
variables (perceived service quality, perceived value, price fairness and
brand image), and one dependent variable (customer satisfaction). These

variables are utilized to assess the relationship between each of the


variable once statistics data gathered from respondents via questionnaire.
Each of the independent variable is to develop whether those factors have
significant relationship with the customer satisfaction of respondents
towards hotel industry. Furthermore, each of the independent variable has
five questions constructed. There are 5 questions of questionnaire are
being developed to review their overall satisfaction level which derived
from hotel service quality, perceived value, price fairness and brand image
they perceived. Respondents are necessary to choose the option which best
represent them. Within Section B, the researcher is using 5 points of Likert
Scale to construct the questions. The measurement scale with five
response categories which ranging from Strongly disagree to Strongly
agree is utilized, that the respondents are required to identify their
acceptance level with each of the statement be correlated with the
independent and dependent variables tested.

3.4.1.3 Section C

Within Section C, it was constructed with 7 questions which are associated


with demographic and personal information of respondents such as
gender, age, race, marital status, marital status, educational level, and
monthly income level of the respondents. That information will be piled
up and organized in order to classify the group of hotel customer for the
results.

3.4.2 Pilot Test

A pilot test of the questionnaire was carried out preceding to the questionnaire is
disseminate to acquire data from respondents. The pilot test is utilized to make
certain in which the questionnaire would note encompass any fault and mistake in
order to make sure that respondents will be equipped to respond all the questions
without any hesitation. Moreover, researcher has the opportunity to amend as well
as adjust the potential issues which might appear in developing of the
questionnaire before the precise questionnaire is developed. Furthermore, there
are 30 sets of questionnaires were distributed for pilot testing while the comments
which were piled up from respondents are utilized to improve the quality and
validity of the questionnaire. Besides, any errors and issues which discovered in
the questionnaire are removed after the assessment of pilot testing. Furthermore,
the reliability test was performed with Statistical Package for Social
Science(SPSS) version 20.0 based on the data of respondents was acquired.
Additionally, Cronbachs Alpha was implemented in order to check the internal
reliability of pilot test result.

3.5 Construct Measurement

Within the research, the researcher implemented the research questionnaire in which the
customer satisfaction attributes related with the perceived service quality, perceived
value, price fairness and brand image. Moreover, the main scale of measurement which
applied to design the questionnaire which consists of nominal, ordinal as well as interval
scale. Within Section A and C, the nominal and ordinal scale is implemented into the
questions for instance gender, age, marital status, and income level. However, Likerts 5
points scale has been utilized in Section B due to its suitability to assess the range as well
as variations in the perception as a way to determine the perception of service quality of
hotel industry. For instance, the scales of 1 to 5 which indicate 1 as strongly disagree
which 5 as strongly agree.

3.5.1 Origins of Construct

Table 3.1: The origin of construct in the research


Construct Measurement
Perceived Value
Perceived Service Quality
Brand Image

Price Fairness
Customer Satisfaction

Adapted From
Chi, T., & Kilduff, P. D. P. , (2011)
Yang, K., & Jolly, D. L. , (2009)
Kim, Y. K. & Lee, H. R. , (2011)
Pakdil, F., & Aydin, O. , (2007)
Park, J. W., Robertson, R., & Wu, C. L., (2005)
Chang, H. H., Hsu, C. H., & Chung, S. H. ,

(2008)
Zhang, X., Feng, Y., (2009)
Park, J. W., Robertson, R., & Wu, C. L., (2005)
Kim, Y. K. & Lee, H. R. , (2011)

Source: Extracted from Literature Review

Table 3.1 demonstrated that five items which implemented to measure the
influence of perceived value towards customer satisfaction in hotel industry. The
respondents are necessary to measure the five items by using five point Likerts
Scale, in which from strongly disagree (1) to strongly agree (5).

3.5.2 Nominal Scale

Nominal scale represents the measurement scale in which limited selection of


outcomes that are not be able to position within any arrangement with the
meaning of measurements. (Zikmund, 2003) Moreover, it can be a scale that
numbers are assigned to an object for identification meaning. There is the
example of question retrieved from Section C, for instance:

1) Marital Status:
[

] Single

] Married

3.5.3 Ordinal Scale

Ordinal scale represents the type of measurement that the relevant scores of data
are identified in which are less or more than in comparison to other data within
the ordinal scale. Besides, these come up from classification degree scales as well
as from transforming interval scale value into ranked data. (Zikmund, 2003)
Within the research, there are seven questions from Section C which implemented
this scale measurement, for instance:

7) Monthly income level:


[

] Below RM1,000

] RM 1,000 RM 2,499

] RM 2,500 RM 4,999

] RM 5,000 RM 7,499

] Above RM 7,500

3.5.4 Likert Scale

Likert scale is utilized to assess of behavior manipulated to denote how strongly


they agree or disagree with testimony and statement which formed by the
researcher in order to rate their level of loyalty when they respond to the
questionnaire. (Zikmund, 2003) There are five constructs that can be selected in
which numerical scare was arranged to each the question which implemented
Likert Scale. The range of the scale is references as follow:

Table 3.2: The range of Likert scale


1
2
3
4
5
Source: Developed for the Research

Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree

3.6 Data Processing

For data processing, questionnaire is a collection of a survey or research queries which


should be inquire to respondents, as well as devised to take out certain information that is
beneficial to the researcher. There are some methods needs to be complying with while in
process as a way to generate an ideal questionnaire. Initially, the researcher has adopted
the questionnaire from other researcher. The next step will be ascertaining the question
which has got to be obtainable from the questionnaire. Finally when the questionnaire has
been generated, the questionnaire will disseminate to the respondents. Then the
researcher will gather back all of the questionnaire from respondents as well as perform
procedures required to help prevent mistake arise.

3.6.1 Checking

For the process of checking, questionnaire checking is needed to be implemented


at the same time as the research study is in progress. Besides, there is necessary to
assess all the questionnaires with the intention that there are not comprised with
any wording mistake and jargon which is incomprehensible to the respondents as
well as to ensure there is no grammar mistake too. It is essential for the
respondents to understand the questionnaire as a way to deliver accurate and
reliable information for the research study. Thus, questionnaire checking should

get started on while the first set of questionnaire has been gathered. With this
manner, the researcher can prevent any mistake and errors which might be occur
before survey has been done.

3.6.2 Editing

For the process of editing, it is a procedure in order to make sure the questionnaire
is without any errors and mistakes with a purpose to improve the consistency and
precision of data collected. Besides, the researcher is going to edit the data which
contain illegal codes, negligence as well as inconsistent results in accordance with
the major responses. Thus, editing questionnaire would be to allow the research
can proceed to the further action without the occurrence of the data collection.

3.6.3 Coding

For the process of coding, it is a process which adding value according to the
responses of the questionnaires. Researcher will assign each of the questions with
the use of code number or numerical scores to represent the responses. Within the
research, the researcher is utilized the Statistical Package for Social
Science(SPSS) software, version 20.0. This is because SPSS is the most widely
utilized for assessment and analysis in order to allow the researcher to acquire and
assess quantitative data in a short time. Furthermore, numerous editing techniques
are applied to simplify and clarify the coding procedure. And hence, an effective
editing will thus help the coding job become easier and more proficiently.

Table 3.3: Labels and Codings which assigned to the Hotel General Information

Question No.
Section A
Q1

Label

Coding

Have you stayed at any 1 = MH Hotel, Perak


hotel from following list?

2 = Kinta Riverfront, Perak


3 = Parkroyal Penang Resort
4 = Berjaya Langkawi Resort, Langkawi
5 = Thistle Port Dickson, Port Dickson
6 = Sunway Resort Hotel & Spa, Petaling
Jaya
7 = Copthorne Hotel Cameron Highlands,
Brinchang
8 = The Majestic Hotel, Kuala Lumpur
9 = Fraser Place, Kuala Lumpur
10 = Others

Q2

How many times have you 1 = I 2 times


stayed at the hotel?

2 = 3 4 times
3 = 5 6 times

Q3

4 = 7 times and above


The purpose of your last 1 = Business

trip while stayed at hotel.


Source: Developed for the Research

2 = Holiday / Leisure

Table 3.4: Labels and Codings which assigned to the Hotel Customer Perception
Information
Question No.
Section B
25 Questions

Label

Coding

Four Independent Variables 1 = Strongly Disagree


and One Dependent

2 = Disagree

Variable

3 = Neutral
4 = Agree
5 = Strongly Agree

Source: Developed for the Research

Table 3.5: Labels and Codings which assigned to the Hotel Customer Information
Question No.
Section C

Label

Coding

Q1

Gender

1 = Gender

Q2

Marital Status

2 = Female
1 = Single

Q3

Age

2 = Married
1 = Below 20 years old
2 = 21 30 years old
3 = 31 40 years old
4 = 41 50 years old

Q4

Race

5 = Above 50 years old


1 = Malay
2 = Chinese
3 = Indian

Q5

Educational Level

4 = Others
1 = Primary / Secondary
2 = STPM / Foundation
3 = Diploma
4 = Degree
5 = Master

Q6

Occupation

6 = PhD
1 = Student
2 = Housewife
3 = Businessman
4 = Employee

Q7

Monthly Income Level

5 = Others
1 = Below RM1,000
2 = RM 1,000 RM 2,499
3 = RM 2,500 RM 4,999

4 = RM 5,000 RM 7,499
5 = Above RM 7,500
Source: Developed for the Research

3.6.4 Transcribing

For the process of data transcribing, it is a process to input the whole necessary
data which were gathered from the respondents into computer. After all necessary
data is being transcribed into computer, the data acquired was computed by the
utilization of Statistical Package for Social Science (SPSS) software.

3.6.5 Cleaning

For the last procedure which are data cleaning, it is necessary in order to detect
and identify the mistake and errors and hence to implement the correction of
errors and mistakes within a data set. Besides, the data and input reliability and
accuracy was examined from the questionnaire to the Statistical Package for
Social Science (SPSS) software. Moreover, by applying the SPSS software, any
inconsistent and undefined data will be identified and detected. Hence, the SPSS
software is applied to examine the consistency and reliability of data acquired.

3.7 Data Analysis

The process of data analysis is to develop useful and beneficial information in order for
decision making through interpretation and assessment of data. Statistical Package for

Social Science (SPSS) software is applied to assess and analyze the data in order to
generate information with the use of tables and graphs. The data are acquired through the
questionnaires which collected from 210 respondents are got to be coded and interpreted
with the use of statistical techniques for instance, descriptive analysis, scale measurement
as well as inferential analysis.

3.7.1 Descriptive Analysis

Descriptive analysis is defined as the information of raw data which has been
turned into a structure that is convenient and can be interpret easily as well as
decode the data acquired via the means of observation, interview as well as
questionnaire. Besides, descriptive statistic portray data via techniques of central
tendency for instance mean, median and mode along with dispersion which
include range, variance and standard deviation. Moreover, descriptive analysis is a
technique of organizing a given data set, in which could be an illustration of the
whole population or even a sample. The data from Section A and C in
questionnaire is examined via the utilization of descriptive analysis. The questions
which developed in Section A and C of the questionnaire that illustrate the
characteristics of sample are distributed. Additionally, the data set is structured by
concluding the frequency of a specific value of a variable arises. And hence, the
researcher has been utilized these measurements in order to organize the abundant
quantities of data into more comprehensible and simpler conditions as a way to
discover the most significant variable.

3.7.2 Scale Measurement

3.7.2.1 Reliability Analysis

For reliability analysis, it is utilized to ascertain in which the measurement


attributes within the questionnaire are highly relevant to each other.
Besides, reliability indicates to the extent to which a scale delivers
consistent results yet repeated measurements are free from random.
(Malhotra & Peterson, 2006) Hence, reliability test is essential because it
is applied to determine potential issues within the early stage as well as to
make sure the research achieves the specified reliability requirements.
Thus, Cronbachs Coefficient Alpha was implemented as a way to test the
reliability, it can be defined as a reliability coefficient which implies the
level of the average inter-correlations between the items which measuring
the abstraction. The table 3.6 indicates that the relationships between alpha
coefficient s range and strength of association.

Table 3.6 The Cronbachs Alpha Coefficient Size


Alpha Coefficient Range
Strength Of Association
0.90
Excellent
0.80 to < 0.90
Very Good
0.70 to < 0.80
Good
0.60 to < 0.70
Moderate
< 0.60
Poor
Source: Hair, J. F., Babin, B. Jr., Money, A. H., & Samouel, P. , (2003).
Essential of Business Research Methods. United Stated of America: John
Wiley & Sons.
In Section B, the questions that measure the independent as well as
dependent variable are necessary to perform the test of reliability as a way
to assess the equilibrium and accurateness of the questions. As stated by
Zikmund (2003), the closer the Cronbachs Alpha is to 1, the higher the
internal consistency reliability. Thus, the alpha value which greater than

0.7 is contemplated as acceptable within the rules of thumb for Cronbachs


Alpha Coefficient value. And hence, the questionnaire created is
considered as reliable.

3.7.3 Inferential Analysis

Inferential analysis is utilized to examine the generalizations of the population


where sample was constructed. The objective is to assess the statistic at hand and
conclude inference regarding the population parameter. Inferential analysis is an
association of statistical measurement utilized to assess the relationship between
independent variables (perceived service quality, perceived value, price fairness
and brand image) as well as dependent variable (customer satisfaction). Within
the research, Pearson Correlation Analysis as well as Multiple Regression
Analysis was utilized to evaluate the reliability between independent variables
and dependent variable and thus to construct a conclusion regarding to the large
population of sample.

3.7.3.1 Pearson Correlation Analysis

Pearson correlation matrix is applied to testing all the hypotheses in which


utilized to measure the relationship between two variables (dependent
variables and independent variables). Correlation coefficient would be a
numerical measurement of the variation or relationship in between two
interval variables. Within the research study, independent variables and
dependent variables are measured by Likert Scale. The Pearson
Correlation Analysis is typically denoted by r in which to measure the
relative strength of the linear relationship between two variables. For

instance, a correlation coefficient, which denoted as r, would be a number


between -1 and +1 which applied to measure the degree of relationship
between two variable X and variable Y. once the data is distributed, the ttest is utilized to calculate the value. Thus, the higher value of the
correlation coefficient, the stronger the level of relationship between two
variables. A positive value for the correlation coefficient implies a positive
relationship. In contrast, a negative value for the correlation coefficient
implies a negative relationship. Within this research, Pearson Correlation
Coefficient is applied to determine correlation between independent
variables (perceived service quality, perceived value, brand image, and
price fairness), and dependent variable (customer satisfaction). The
objective is to discover the positive or negative relationship between the
two variables within this research. The coefficient range table, as shown in
Appendix 3.3 indicates that the relationship between coefficient range as
well as the strength of relationship between two variables.

3.7.3.2 Multiple Regression Analysis

Multiple regression analysis refers to a statistical measurement that


implemented to assess the relationship between the multiple independent
variables, in which more than one independent variable is influencing the
dependent variable. Within the multiple regression analysis, multiple
independent variables of the research will be input into the similar
regression equation. For instance, a separate regression of each of the
variable will be examined and computed to assess the relationship with the
dependent variable. There are a relationship between each dependent
variable and independent variables if linear relationship appeared.
Furthermore, all the variables are measured by likert scales within
questionnaire.

Hence, the multiple regression has been calculated by the following


equation:
Y = a + b1X1 + b2X2 + b3X3 +
Where Y = dependent variable
X = independent variables
a = constant value / Y-intercept
b = unstandardized coefficient
The outcome of multiple regression analysis will define the positive or
negative relationship between the independent variables and dependent
variable.

3.8 Conclusion

In a nutshell, the review of research methodology has been explained within this chapter.
The research methodologies were utilized to collect, analyze as well as interpret data
required. Besides, Statistical Package for Social Science (SPSS) software was applied to
help in analysis and data interpretation as well. Primarily, questionnaire was utilized to
acquire more precise and accurate information from the large pool of respondents.
Besides, primary data as well as secondary data such as journals, and reference books
ware utilized to assist researcher to acquire better understanding regarding to the topic
which was evaluated. Target population, sampling elements, frame as well as location,
along with sample size and techniques were expressed within this chapter. Additionally,
scales utilized to conduct the measurement were also further expressed. Data preparation
procedures for instance, data checking, data editing, data coding and data transcribing
were also expressed further within this chapter.

CHAPTER FOUR: DATA ANALYSIS

4.0 Introduction

The primary goal of this chapter is to evaluate as well as interpret the data which acquired
from the questionnaire. Within the research, 300 sets of questionnaire are gathered to
perform the test. The data acquired from questionnaire that disseminated to respondents
would be evaluated by the utilization of Statistical Package of the Social Sciences
(SPSS), version 20.0. The result would be analyzed according to the hypotheses analysis
which was defined within the preceding chapter. The researcher will construe the result
through the utilization of descriptive analysis, scale measurement as well as inferential
analysis. The result will be demonstrated within graphical displays for instance, table and
bar chart to easier construct and understand the result of the analysis and the statistical
data.

4.1 Descriptive Analysis


4.1.1 Respondents Demographic Profile
The demographic profile of the respondents which included of seven questions
has been identified within Section C. A total of seven questions were constructed

to obtain information about the respondents gender, marital status, occupation,


age, race, income, and education level.

4.1.1.1 Gender

Table 4.1 Frequency distribution of respondents gender

Frequency
Male
93
Female
117
Total
210
Source: SPSS, version 20.0

Percentage

Figure 4.1 Gender of Respondents

44%
56%

Source: SPSS, version 20.0

Female
Male

According to Table 4.1 and Figure 4.1, the majority of the respondents are
female which including 55.7% (117 respondents) whereas the male
respondents including 44.3% (93 respondents).

4.1.1.2 Marital Status

Table 4.2 Marital Status of Respondents

Single
Marrie

Frequency
96

Percent

45.7

114
d
Total
210
Source: SPSS, version 20.0

54.3

100.0

Figure 4.2 Marital Status of Respondents

46%
54%

Single
Married

Source: SPSS, version 20.0


According to Table 4.2 and Figure 4.2, the majority of the respondents are
married which including 54.3% (114 respondents) whereas the male
respondents including 45.7% (96 respondents).

4.1.1.3 Age

Table 4.3 Age of Respondents


Frequency

Percent

27

12.9

87
37
51

41.4
17.6
24.3

8
old
Total
210
Source: SPSS, version 20.0

3.8

Below 20 years
old
21 30 years old
31 40 years old
41 50 years old
Above 50 years

Figure 4.3 Age of Respondents

100.0

4%

13%

24%

18%

41%

Below 20 years old


21 - 30 years old
31 - 40 years old
41 - 50 years old
Above 50 years old

Source: SPSS, version 20.0

According to the Table 4.1.1.3 and Figure 4.1.1.3 above illustrated the
information of the age of respondents. The majority respondents are from
the age group 21 30 years old which is consists of a total of 41.4% (87
respondents) of total respondents. The following age group is 41 50
years old which consists of a total of 24.3% (51 respondents) of total
respondents whereas the age group of 31 40 years old which consists of
17.6% (37 respondents) of total respondents. In the meantime, the age
groups of below 20 years old and above 50 years old, both of the age
group have the lowest percentage in the comparison to others age group
which are 12.9% (27 respondents) of total respondents and 3.8% (8
respondents) of total respondents.

4.1.1.4 Race

Table 4.4 Race of Respondents

Frequency
Malay
40
Chinese
104
Indian
66
Total
210
Source: SPSS, version 20.0

Percent
19.0
49.5
31.4
100.0

Figure 4.4 Race of Respondents

19%
31%
Malay
Chinese
Indian
50%

Source: SPSS, version 20.0

According to Table 4.1.1.4 and Figure 4.1.1.4, the majority of respondents


are Chinese which consists of 49.5% (104 respondents). The following

race group is Indian which consists of 31.4% (66 respondents) while the
race group is Malay which consists of 19.0% (40 respondents).

4.1.1.5 Educational Level

Table 4.5 Educational Level of Respondents

Frequency
Primary /
Secondary
STPM /
Foundation
Diploma
Degree
Master
PhD
Total
Source: SPSS, version 20.0

Percent

25
27
32
96
27
3
210

Figure 4.5 Educational Level of Respondents

13%

1% 12%
13%

15%
46%

Primary / Secondary
STPM / Foundation
Diploma
Degree
Master
PhD

Source: SPSS, version 20.0

The educational level of respondents has been classified into six


categories, which are Primary / Secondary, STPM / Foundation, Diploma,
Degree, Master and PhD. According to Table 4.1.1.5 and Figure 4.1.1.5,
the majority of respondents are having Degree qualification which consists
of 45.7% (96 respondents). The following respondents are having
Diploma qualification which consists of 15.2% (32 respondents). Besides,
there are 12.9% (27 respondents) which consists of STPM / Foundation
and also 12.9% (27 respondents) having Master qualification respectively.
Subsequently followed Primary / Foundation which consists of 11.9% (25
respondents) whereas the lowest percentage of 1.4% (4 respondents)
which pertaining PhD qualification.

4.1.1.6 Occupation

Table 4.6 Occupation of Respondents

Frequency
Student
44
Housewife
16
Businessman
29
Employee
114
Others
7
Total
210
Source: SPSS, version 20.0

Percent
21.0
7.6
13.8
54.3
3.3
100.0

Figure 4.6 Occupation of Respondents

3%

21%

8%
54%
14%

Student
Housewife
Businessman
Employee
Other

Source: SPSS, version 20.0

According to Table 4.1.1.6 and Figure 4.1.1.6, the majority of respondents


are employee which consists of 54.3% (114 respondents). The following
respondents group is student which consists of 21.0% (44 respondents)
whereas 13.8% (29 respondents) of total respondents is businessman.

Besides, there are 7.6% (16 respondents) of total respondents are


housewife whereas the occupation of 3.3% (7 respondents) is others.

4.1.1.7 Monthly Income Level

Table 4.7 Monthly Income Level of Respondents

Below RM1,000
RM 1,000 RM

Frequency
61

2,499
RM 2,500 RM
4,999
RM 5,000 RM
7,499
Above RM 7,500
Total
Source: SPSS, version 20.0

49
59
27
14
210

Figure 4.7 Monthly Income Level of Respondents

Percent

7%
13%

29%

28%
23%

Below RM 1,000
RM 1,000 - RM 2,499
RM 2,500 - RM 4,999
RM 5,000 - RM 7,499
Above RM 7,500

Source: SPSS, version 20.0


According to the Table 4.1.1.7 and Figure 4.1.1.7 above illustrated the
information of the monthly income level of respondents. The majority
respondents are from the monthly income level group below RM 1,000
which is consists of a total of 29.0% (61 respondents) of total respondents.
The following monthly income level group is RM 2,500 RM 4,999
which consists of a total of 28.1% (59 respondents) of total respondents
whereas the monthly income level group of RM 1,000 RM 2,499 which
consists of 23.3% (49 respondents) of total respondents. In the meantime,
the percentage of 12.9% (27 respondents) has the monthly income level
group of RM 5,000 RM 7,499. The percentage of 6.7% (14 respondents)
of total respondents has the monthly income level which above RM 7,500.

4.1.2 General Information

Section A of the questionnaire is the general information which involved


with three questions that utilized to gather respondents information
regarding to which hotel companies they stayed at, how many times they
stayed at the hotel, as well as their purpose when they stayed at the hotel.
4.1.2.1 Hotel Company That Respondents Stayed At

Table 4.8 Hotel Company that Respondent Stayed At


Have you ever stayed at any hotel from following list?
Frequency
MH Hotel, Perak
34
Kinta Riverfront, Perak
24
Parkroyal Penang
29
Resort
Berjaya Langkawi
9
Resort, Langkawi
Thistle Port Dickson,
23
Port Dickson
Sunway Resort Hotel &
18
Spa, Petaling Jaya
Copthorne Hotel
Cameron Highlands,
Brinchang
The Majestic Hotel,
Kuala Lumpur
Fraser Place, Kuala
Lumpur
Others
Total

Percent

16.2
11.4

13.8

4.3

11.0

8.6

22

10.5

3.3

2.9

38
210

18.1
100.0

Source: SPSS, version 20.0

Figure 4.8 Hotel Company that Respondent Stayed At

3%
3%
10%
9%

18%
16%
11%
14%
11% 4%

MH Hotel, Perak
Parkroyal Penang Resort
Thistle Port Dickson, Port
Dickson
Copthorne Hotel Cameron
Highlands, Brinchang
Fraser Place, Kuala Lumpur

Kinta Riverfront, Perak


Berjaya Langkawi Resort,
Langkawi
Sunway Resort Hotel &
Spa, Petaling Jaya
The Majestic Hotel, Kuala
Lumpur
Others

Source: SPSS, version 20.0

As stated by the research, the respondent population is focused on


Ipoh KTM station, Ipoh, Perak. The targeted population is who
have stayed at hotel in order to obtain the information required.
Besides, the targeted sample size is 300, however the researcher
have gathered back 210 questionnaires which provided acute
information to the research. Table 4.1.2.1 illustrated that the
frequency and percentage of respondents stayed at the hotel. As
shown by Table 4.1.2.1 and Figure 4.1.2.1 above illustrated the
information of the hotel that respondent stayed at. The majority
respondents are stayed at other hotel which is consists of a total of
18.1% (38 respondents) of total respondents. The following
percentage of 16.2% (34 respondents) of total respondents has
chosen MH Hotel, Perak whereas there are 13.8% (29 respondents)

has chosen Parkroyal Penang Resort. There are a percentage of


11.4% (24 respondents) of total respondents has chosen Kinta
Riverfront, Perak while 11.0% (23 respondents) of total
respondents has chosen Thistle Port Dickson, Port Dickson. In the
meantime, Copthorne Hotel Cameron Highlands, Brinchang has
the percentage of 10.5% (22 respondents) of total respondents
whereas Sunway Resort Hotel & Spa, Petaling Jaya has the
percentage of 8.6% (18 respondents) of total respondents. There
are a percentage of 4.3% (9 respondents) of total respondents has
chosen Berjaya Langkawi Resort, Langkawi while 3.3%
( respondents) of total respondents has chosen The Majestic Hotel,
Kuala Lumpur. The lowest percentage of 2.9% (6 respondents) has
chosen Fraser Place, Kuala Lumpur. Hence, it shows that the
majority of respondents choose other hotels as option in order to
evaluate their satisfaction towards the hotel.

4.1.2.2 Respondents Staying Experience At Hotel

Table 4.9 Respondents Staying Experience at Hotel


How many times have you stayed at the hotel?
Frequency

Percent

1 2 times
3 4 times
5 6 times
7 times and
above
Total
Source: SPSS, version 20.0

88
92
20

41.9
43.8
9.5

10

4.8

210

100.0

Figure 4.9 Respondents Staying Experience at Hotel

10%

5%
42%

44%

1 -2 times
3 - 4 times
5 - 6 times
7 times and above

Source: SPSS, version 20.0

As stated by the research, the respondent population is focused on


Ipoh KTM station, Ipoh, Perak. The targeted population is who
have stayed at hotel in order to obtain the information required.
Besides, the targeted sample size is 300, however the researcher
have gathered back 210 questionnaires which provided acute and
valid information to the research. For the respondents staying
experience at hotel, it has been classified into four categories,
which consists of 1 2 times, 3 4 times, 5 6 times, as well as 7

times and above. According to the Table 4.1.2.2 and Figure 4.1.2.2
above illustrated the information of the staying experience in hotel
of respondents. The majority respondents are staying at hotel 1 2
times which is consists of a total of 43.8% (92 respondents) of total
respondents. The following respondents group staying at hotel for
3 4 times which consists of a total of 41.9% (88 respondents) of
total respondents whereas the age group of 31 40 years old which
consists of 9.5% (20 respondents) of total respondents stayed at
their preferred hotel for 5 6 times. There are 4.8% (10
respondents) has the lowest percentage in which they stayed at
their preferred hotel for 7 times and above.

4.1.2.3 Purpose of the Trip


Table 4.10 Purpose of the Trip
Please state the purpose of your last trip while stayed in hotel:
Frequency
Percent
Business
63
30.0
Holiday /
147
70.0
Leisure
Total
210
100.0
Source: SPSS, version 20.0

Figure 4.10 Purpose of the Trip

30%
Business
Holiday / Leisure
70%

Source: SPSS, version 20.0

As stated by the research, the respondent population is focused on


Ipoh KTM station, Ipoh, Perak. The targeted population is who
have stayed at hotel in order to obtain the information required.
Besides, the targeted sample size is 300, however the researcher
have gathered back 210 questionnaires which provided acute and
valid information to the research. For the staying purpose that
respondents last trip at hotel, it has been classified into two
categories, which consists of business purpose as well as holiday /
leisure purpose. According to Table 4.1.2.3 and Figure 4.1.2.3, the
majority of the respondents stayed at hotel with business purpose
which consists of 7.0% (147 respondents) whereas the respondents
stayed at hotel with holiday / leisure purpose including 30.0% (63
respondents).

4.1.2 Central Tendency Measurement of Constructs


4.1.2.1 Perceived Value
Table 4.11: Perceived Value
Descriptive Statistics
N
Mean

Std.

Variance

Deviation
PV1. The hotel services
have an acceptable

210

3.77

.947

.897

210

3.97

.945

.894

210

4.12

.955

.913

210

3.91

.934

.873

210

3.77

1.071

1.146

standard of quality.
PV2. The hotel services
are good for the price
paid.
PV3. The hotel services
fulfill my needs well.
PV4. I feel relaxed
when I use the hotel
services.
PV5. Using the hotel
services provided by
the hotel is worth for
me to sacrifice some
time and efforts in
purchasing.
Source: SPSS, version 20.0

Table 4.11 indicates that the descriptive statistics of perceived value which
included the mean, standard deviation as well as variance. The Statistical
Package of the Social Sciences (SPSS), version 20.0 was implemented to
outline the statistics data which acquired from each question of perceived
value. The hotel services fulfill my needs well. has the highest mean

value which is 4.12. The second highest mean is The hotel services are
good for the price paid. which has a mean value of 3.97. I fell relaxed
when I use the hotel services. has the mean value which is 3.91 and
ranked third. The hotel services have an acceptable standard of quality
and Using the hotel services provided by the hotel is worth for me to
sacrifice some time and efforts in purchasing. have the same lowest
highest mean value which is 3.77. According to the finding, the fifth
question (PV5) has the highest standard deviation and variance which is
1.071 and 1.146. The third question (PV3) has the second highest standard
deviation of 0.955 and variance of 0.913. And thus followed by the first
question (PV1) which has the standard deviation of 0.947 and variance of
0.897 and ranked third. Second question (PV2) ranked fourth which has
standard deviation of 0.945 and variance of 0.894. Lastly, question four
(PV4) obtained the lowest standard deviation of 0.934 and variance of
0.873.

4.1.2.2 Perceived Service Quality

Table 4.12: Perceived Service Quality


Descriptive Statistics
N
Mean

Std.

Variance

Deviation
SQ1. The hotel has
operating hours
convenient to all its

210

3.50

1.004

1.007

210

3.69

.961

.923

customers.
SQ2. The hotels
employees are welldressed and appear
neat.

SQ3. The hotels


employees give me

210

3.72

.897

.804

210

3.70

.898

.806

210

3.72

.949

.902

prompt service.
SQ4. The hotel
provides its services at
the time it promises to
do so.
SQ5. I feel safe in my
transactions with the
hotel.
Source: SPSS, version 20.0
Table 4.12 indicates that the descriptive statistics of perceived service
quality which included the mean, standard deviation as well as variance.
The Statistical Package of the Social Sciences (SPSS), version 20.0 was
implemented to outline the statistics data which acquired from each
question of perceived service quality. The second highest mean is The
hotel provides its services at the time it promises to do so. which has a
mean value of 3.70. The hotels employees give me prompt service. and
I feel safe in my transactions with the hotel have the same highest mean
value which is 3.72. The hotels employees are well-dressed and appear
neat. has the mean value which is 3.69 and ranked third. The lowest mean
is The hotel has operating hours convenient to all its customers. which
has the mean value of 3.50. According to the finding, the first question
(SQ1) has the highest standard deviation and variance which is 1.004 and
1.007. The second question (SQ2) has the second highest standard
deviation of 0.961 and variance of 0.923. And thus followed by the fifth
question (SQ5) which has the standard deviation of 0.949 and variance of
0.902. Question four (SQ4) ranked fourth which has standard deviation of
0.898 and variance of 0.806. Lastly, question three (SQ3) obtained the
lowest standard deviation of 0.897 and variance of 0.804.

4.1.2.3 Brand Image

Table 4.13: Brand Image


Descriptive Statistics
N
Mean

Std.

Variance

Deviation
BI1. I have always had
a good impression of

210

3.45

1.026

1.053

210

3.65

.901

.812

210

3.40

.871

.759

210

3.63

.838

.702

210

3.58

1.066

1.135

the hotel.
BI2. I believe that the
hotel has better image
than its competitors.
BI3. I consider that the
hotels reputation is
high.
BI4. The hotel brand is
trustworthy.
BI5. The hotel brand
offers good service
quality.
Source: SPSS, version 20.0
Table 4.13 indicates that the descriptive statistics of brand image which
included the mean, standard deviation as well as variance. The Statistical
Package of the Social Sciences (SPSS), version 20.0 was implemented to
outline the statistics data which acquired from each question of brand
image. I believe that the hotel has better image than its competitors. has
the highest mean value which is 3.65. The second highest mean is The
hotel brand is trustworthy. which has a mean value of 3.63. The hotel
brand offers good service quality. has the mean value which is 3.58 and
ranked third. I have always had a good impression of the hotel. has the
fourth highest mean value which is 3.45. The lowest mean is I consider

that the hotels reputation is high. which has the mean value of 3.40.
According to the finding, the fifth question (BI5) has the highest standard
deviation and variance which is 1.066 and 1.135. The first question (BI1)
has the second highest standard deviation of 1.026 and variance of 1.053.
And thus followed by the second question (BI2) which has the standard
deviation of 0.901 and variance of 0.812 and ranked third. Third question
(BI3) ranked fourth which has standard deviation of 0.871 and variance of
0.759. Lastly, question four (BI4) obtained the lowest standard deviation
of 0.838 and variance of 0.702.

4.1.2.4 Price Fairness

Table 4.14: Price Fairness


Descriptive Statistics
N
Mean

Std.

Variance

Deviation
PF1. The hotel took
effective ways to help
us know its pricing

210

3.99

.748

.560

210

3.98

.797

.636

210

4.08

.827

.683

210

4.06

.811

.657

policies of products and


services.
PF2. The pricing
policies of products and
services from the hotel
are attractive.
PF3. The rate of hotel
services is reasonable.
PF4. The hotel is
offering flexible pricing
for various services that
meet my needs.

PF5. I will continue to


stay with the hotel
unless the price is
significantly higher as

210

3.88

.975

.951

compared to other
hotel.
Valid N (listwise)
Source: SPSS, version 20.0

210

Table 4.14 indicates that the descriptive statistics of price fairness which
included the mean, standard deviation as well as variance. The Statistical
Package of the Social Sciences (SPSS), version 20.0 was implemented to
outline the statistics data which acquired from each question of price
fairness. The rate of hotel services is reasonable. has the highest mean
value which is 4.08. The second highest mean is The hotel is offering
flexible pricing for various services that meet my needs. which has a
mean value of 4.06. The hotel took effective ways to help us know its
pricing policies of products and services. has the mean value which is
3.99 and ranked third. The pricing policies of products and services from
the hotel are attractive. has the mean value of 3.98 and ranked fourth.
The lowest mean is I will continue to stay with the hotel unless the price
is significantly higher as compared to other hotel. which has the mean
value of 3.88. According to the finding, the fifth question (PF5) has the
highest standard deviation and variance which is 0.975 and 0.951. The
third question (PF3) has the second highest standard deviation of 0.827
and variance of 0.683. And thus followed by the fourth question (PF4)
which has the standard deviation of 0.811 and variance of 0.657 and
ranked third. Second question (PF2) ranked fourth which has standard
deviation of 0.797 and variance of 0.636. Lastly, first question (PF1)
obtained the lowest standard deviation of 0.748 and variance of 0.560.

4.1.2.5 Customer Satisfaction

Table 4.15: Customer Satisfaction


Descriptive Statistics
N
Mean

Std.

Variance

Deviation
CS1. I think I did the
right thing when I
decided to stay in the

210

3.47

.881

.776

210

3.45

1.016

1.033

210

3.47

1.017

1.035

210

3.36

1.004

1.007

210

3.59

.925

.855

hotel.
CS2. My choice to stay
in the hotel was a wise
one.
CS3. I feel satisfied
with the hotels service
quality.
CS4. The hotel
company always fulfils
my expectations.
CS5. I am pleased to
have visited the hotel.
Valid N (listwise)
Source: SPSS, version 20.0

210

Table 4.15 indicates that the descriptive statistics of customer satisfaction


which included the mean, standard deviation as well as variance. The
Statistical Package of the Social Sciences (SPSS), version 20.0 was
implemented to outline the statistics data which acquired from each
question of customer satisfaction. I am pleased to have visited the hotel.
has the highest mean value which is 3.59. The second highest mean are I
think I did the right thing when I decided to stay in the hotel. And I feel
satisfied with the hotels service quality. which have the same mean
value of 3.47. My choice to stay in the hotel was a wise one. has the

mean value which is 3.45 and ranked third. The lowest mean is The hotel
company always fulfills my expectations. which has the mean value of
3.36. According to the finding, the third question (CS3) has the highest
standard deviation and variance which is 1.017 and 1.035. The second
question (CS2) has the second highest standard deviation of 1.016 and
variance of 1.033. And thus followed by the fourth question (CS4) which
has the standard deviation of 1.004 and variance of 1.007 and ranked third.
The fifth question (CS5) has the standard deviation of 0.925 and variance
of 0.855 and ranked fourth. The first question (CS1) obtained the lowest
standard deviation of 0.881 and variance of 0.776.

4.2 Scale of Measurement


4.2.1 Internal Reliability for Pilot Test

Table 4.16 Reliability Statistics for each of the variable


Variable
IV1
IV2

Constructs
Perceived Value
Perceived Service

Cronbachs Alpha
0.836
0.830

No. of Items
5
5

IV3
IV4
DV

Quality
Brand Image
Price Fairness
Customer

0.893
0.788
0.925

5
5
5

Satisfaction
Source: Developed for the research

The research was examined for its reliability and hence the result is expressed
within Table 4.16. There are total of 25 items measured within the research.
Besides, each of the variable was measured by using 5 items. According to the
result, Customer Satisfaction has reached the highest Cronbachs Alpha value at
0.925 while Price Fairness achieved the lowest Cronbachs Alpha value at 0.788.
Brand Image ( =0.893) and Perceived Value ( =0.836), are expressed as reached
a good reliability. (Hair et. al., 2003) Furthermore, Price Fairness ( =0.788) is
represented as a good reliability due to its Cronbachs Alpha was higher than 0.7.
(Hair et. al., 2003)
Based on Table 3.6, Alpha Coefficient of 0.7 was classified as the minimum
requirements. (Hair et. al., 2003) Hence, the result of the Cronbachs Alpha are
classified from 0.788 to 0.925, that was exceeded the lower requirement of 0.7. As
a result, the constructed research are reliable and the questionnaire is disseminated
to 300 respondents.

4.3 Inferential Analysis

Inferential analysis is utilized to generate the conlcusion about the characteristics


of the population regarding to the sample data. Besides, Pearson correlation
analysis and multiple regression analysis will be implemented to evaluate the
individual varaibles and its relationship with other variables.

4.3.1 Pearson Correlation Anaysis


4.3.1.1 Perceived Value

H0: The is no relationship between perceived value and customer


satisfaction.

H1: The is a relationship between perceived value and customer


satisfaction.
Table 4.17 Correlation between Perceived Value and Customer Satisfaction
Correlations
AvePV
Pearson Correlation
AvePV

Sig. (2-tailed)
N
Pearson Correlation

AveCS
1

.611**

210

.000
210

.611**

AveCS
Sig. (2-tailed)
.000
N
210
**. Correlation is significant at the 0.01 level (2-tailed).

210

Source: SPSS, version 20.0

Result interpretation from Table 4.17:


r = 0.611

Perceived value has a 0.611, 61.1% of correlation with the

customer satisfaction. Hence, there is a positive correlation which


indicates that perceived value and customer satisfaction vary together in
the same direction. The value of this correlation coefficient 0.611 is fall
under coefficient range from 0.41 to 0.70. Thus, the relationship
between perceived value and customer satisfaction is moderate. If p-value
less than 0.01, it will reject H0. According to the table above, the p-value
0.000 is less than alpha value 0.01 and hence the null hypothesis (H0) is
rejected. As a result, the relationship between perceived value and
customer satisfaction is significant.

4.3.1.2 Perceived Service Quality

H0: The is no relationship between perceived service quality and customer


satisfaction.
H1: The is a relationship between perceived service quality and customer
satisfaction.
Table 4.18 Correlation between Perceived Service Quality and Customer
Satisfaction
Correlations
AveSQ
Pearson Correlation
AveSQ

Sig. (2-tailed)
N
Pearson Correlation

AveCS
1

.661**

210

.000
210

.661**

AveCS
Sig. (2-tailed)
.000
N
210
**. Correlation is significant at the 0.01 level (2-tailed).

210

Source: SPSS, version 20.0


Result interpretation from Table 4.18:
r = 0.661

Perceived service quality has a 0.661, 66.1% correlation

with the customer satisfaction. Hence, there is a positive correlation which


indicates that perceived service quality and customer satisfaction vary
together in the same direction. The value of this correlation coefficient
0.661 is fall under coefficient range from 0.41 to 0.70. Thus, the
relationship between perceived service quality and customer satisfaction is
moderate. If p-value less than 0.01, it will reject H0. According to the

table above, the p-value 0.000 is less than alpha value 0.01 and hence the
null hypothesis (H0) is rejected. As a result, the relationship between
perceived service quality and customer satisfaction is significant.

4.3.1.3 Brand Image

H0: The is no relationship between brand image and customer satisfaction.


H1: The is a relationship between brand image and customer satisfaction.
Table 4.19 Correlation between Brand Image and Customer Satisfaction
Correlations
AveBI

AveCS
1

.638**

210

.000
210

.638**

Sig. (2-tailed)
.000
N
210
**. Correlation is significant at the 0.01 level (2-tailed).

210

Pearson Correlation
AveBI

Sig. (2-tailed)
N
Pearson Correlation

AveCS

Source: SPSS, version 20.0


Result interpretation from Table 4.19:
r = 0.638

Brand image has a 0.638, 63.8% correlation with the

customer satisfaction. Hence, there is a positive correlation which


indicates that brand image and customer satisfaction vary together in the
same direction. The value of this correlation coefficient 0.638 is fall under
coefficient range from 0.41 to 0.70. Thus, the relationship between
brand image and customer satisfaction is moderate. If p-value less than

0.01, it will reject H0. According to the table above, the p-value 0.000 is
less than alpha value 0.01 and hence the null hypothesis (H0) is rejected.
As a result, the relationship between brand image and customer
satisfaction is significant.

4.3.1.4 Price Fairness

H0: The is no relationship between price fairness and customer


satisfaction.
H1: The is a relationship between price fairness and customer satisfaction.
Table 4.20 Correlation between Brand Image and Customer Satisfaction
Correlations
AvePF

AveCS
1

.602**

210

.000
210

.602**

Sig. (2-tailed)
.000
N
210
**. Correlation is significant at the 0.01 level (2-tailed).

210

Pearson Correlation
AvePF

Sig. (2-tailed)
N
Pearson Correlation

AveCS

Source: SPSS, version 20.0


Result interpretation from Table 4.20:
r = 0.692

Price fairness has a 0.602, 60.2% correlation with the

customer satisfaction. Hence, there is a positive correlation which


indicates that price fairness and customer satisfaction vary together in the
same direction. The value of this correlation coefficient 0.602 is fall under

coefficient range from 0.41 to 0.70. Thus, the relationship between


price fairness and customer satisfaction is moderate. If p-value less than
0.01, it will reject H0. According to the table above, the p-value 0.000 is
less than alpha value 0.01 and hence the null hypothesis (H0) is rejected.
As a result, the relationship between price fairness and customer
satisfaction is significant.

4.3.1.5 Summary of Four Independent Variables on Customer


Satisfaction

Table 4.21: Summary of Pearson Correlation Analysis


Correlations
AvePV AveSQ

AveBI

AvePF

AveCS

Pearson
AvePV Correlation
Sig. (2-tailed)
N
Pearson
AveSQ Correlation
Sig. (2-tailed)
N
Pearson
AveBI Correlation
Sig. (2-tailed)
N
Pearson
AvePF Correlation
Sig. (2-tailed)
N
Pearson

210
.536**
.000
210

210

.535**

.534**

.000
210

.000
210

210

.624**

.496**

.383**

.000
210

.000
210

.000
210

.611**
.661**
.638**
Correlation
AveCS
Sig. (2-tailed)
.000
.000
.000
N
210
210
210
**. Correlation is significant at the 0.01 level (2-tailed).
Source: SPSS, version 20.0

210
.602**
.000
210

210

According to the Table 4.21, it has demonstrated that the correlation


matrix for the five examined constructs which were perceived value (PV),
perceived service quality (SQ), brand image (BI), price fairness (PF) and
customer satisfaction (CS). As stated at the Table 4.xx, all the constructs
did not exceed the value of 0.70. Therefore, all the constructs were
different as well as did not overlap with each other. There were positive
correlations among all the five constructs due to the reason that none of
the constructs contained negative value. There are none of the independent
variables were removed from this model. Hence, all the variables can be
implemented for further assessment within multiple regression analysis.

4.3.2 Multiple Regressions Analysis

Multiple regression analysis on perceived sercive quality, perceived value, brand


image, price fairness, and customer satisfaction in hotel industry are indicated as
fallowing:
AveCS = Customer Satisfaction
AvePF = Price Fairness
AveSQ = Perceived Service Quality
AvePV = Perceived Value
AveBI = Brand Image
Table 4.22: Model Summary

Model

Model Summary
R Square Adjusted R

Std. Error of

Square
the Estimate
1
.792
.628
.621
2.066
a. Predictors: (Constant), AvePF, AveBI, AveSQ, AvePV
Source: SPSS, version 20.0
a

Based on Table 4.22, the value of the R Square is 0.628. this indicates that about
62.80% of the dependent variable (customer satisfaction) can be explained by the
variances in all the independent variables (perceived service quality, perceived
value, brand image, and price fairness). This also indicates that there are other
factors express the remaining 37.20% variation of customer satisfaction can be
explained by other variables which are excludes these independent variables
(perceived service quality, perceived value, brand image, and price fairness). The
r value is positive and having a moderate relationship which is 0.628 fall under
coffiecient range (0.41 to 0.70) between the dependent variable (customer
satisfaction) and independent variables (perceived service quality, perceived
value, brand image, and price fairness).
Table 4.23: ANOVA

Model

Sum of

ANOVAa
df

Mean

Squares
Square
Regression
1477.109
4
369.277
1
Residual
874.872
205
4.268
Total
2351.981
209
a. Dependent Variable: AveCS
b. Predictors: (Constant), AvePF, AveBI, AveSQ, AvePV
Source: SPSS, version 20.0

F
86.529

Sig.
.000b

Based on Table 4.23, the F-value is 86.529 and the significant level is 0.000
which lower than the alpha value (0.01 or 0.05). As a result, there is a significant
predictors and also having significant effect of the independent variables
(perceived service quality, perceived value, brand image, and price fairness) on
the dependent varaible (customer satisfaction).

4.3.2.1 Test of Significant

Table 4.24: Summary of Regression Coefficients

Model

Coefficientsa
Unstandardized
Standardized

Coefficients
Coefficients
B
Std. Error
Beta
(Constant)
-3.960
1.239
AvePV
.103
.052
.121
1
AveSQ
.367
.067
.302
AveBI
.341
.058
.313
AvePF
.327
.072
.257
a. Dependent Variable: AveCS
Source: SPSS, version 20.0

Sig.

-3.196
1.987
5.455
5.829
4.565

.002
.048
.000
.000
.000

As stated at Table 4.24, perceived service quality act as the most


significant factors affecting the customer satisfaction because it has the
highest Beta of Unstandardized Coefficients which is 0.367 among the
independent variables. Brand image will be the second factor affecting the
customer satisfaction that has 0.341 Beta of Unstandardized Coefficients.
The third will be the price fairness which has 0.327 Beta of
Unstandardized Coefficients. Perceived value has the lowest Beta of
Unstandardized Coefficients which is 0.103 among the independent
variables. Besides, perceived value, perceived service quality, brand image
and price fairness have positive correlations to customer satisfaction due
to the reason that the p-values are significant, which are lower than 0.05.

Table 4.25: Ranking of Independent Variables based on Standardized


Coefficient Beta
Independent Variables
Brand Image
Perceived Service Quality
Price Fairness
Perceived Value
Source: SPSS, version 20.0

Standardized Coefficient, Beta


0.313
0.302
0.257
0.121

Ranking
1
2
3
4

Based on the Multiple Linear Regression analysis, the Multiple Linear


Regression equation is contructed as below, the equation evaluate the
relationship between independent variables and dependant variable.
Regression equation:
Y = C + 1X1 + 2X2 + 3X3 + 4X4 + 5X5
Where,
Y = Customer satisfaction in hotel industry
C = Constant Value
= Unstandardized coefficient
X = Independent variables (Perceived Value, Perceived Service Quality,
Brand Image, Price Fairness)
The researcher substitute the value acquired from the result above into the
equation:
Customer Satisfaction = -3.960 + 0.103PV + 0.367SQ + 0.341BI +
0.327PF
Where PV = Perceived Value
SQ = Perceived Service Quality
BI = Brand Image
PF = Price Fairness

4.3.2.1.1 Hypothesis 1

H0: The is no significant relationship between perceived value and


customer satisfaction.
H1: The is significant relationship between perceived value and customer
satisfaction.

According to Table 4.4.4, perceived value is significant to predict


customer satisfaction within the research. This is due to the p-value for
perceived value is 0.048 which is less than alpha value of 0.05.

4.3.2.1.2 Hypothesis 2

H0: The is no significant relationship between perceived service quality


and customer satisfaction.
H1: The is significant relationship between perceived service quality and
customer satisfaction.

According to Table 4.4.4, perceived service quality is significant to predict


customer satisfaction within the research. This is due to the p-value for
perceived service quality is 0.000 which is less than alpha value of 0.05.

4.3.2.1.3 Hypothesis 3

H0: The is no significant relationship between brand image and customer


satisfaction.

H1: The is significant relationship between brand image and customer


satisfaction.

According to Table 4.4.4, brand image is significant to predict customer


satisfaction within the research. This is due to the p-value for brand image
is 0.000 which is less than alpha value of 0.05.

4.3.2.1.4 Hypothesis 4

H0: The is no significant relationship between price fairness and customer


satisfaction.
H1: The is significant relationship between price fairness and customer
satisfaction.

According to Table 4.4.4, price fairness is significant to predict customer


satisfaction within the research. This is due to the p-value for price
fairness is 0.000 which is less than alpha value of 0.05.

4.3.2.2 Highest Contribution

Brand image is the predictor variable which contributes the highest to


variation of the dependent variable (customer satisfaction) due to the Beta
value which under standardized coefficients for these predictor variables is
the largest (0.313) in comparison to other predictor variables (perceived
service quality, perceived value, price fairness).

4.3.2.3 Second Highest Contribution

Perceived service quality is the predictor variable which contributes the


second highest to variation of the dependent variable (customer
satisfaction) due to the Beta value which under standardized coefficients
for these predictor variables is the second largest (0.302) in comparison to
other predictor variables (perceived service quality, perceived value, brand
image).

4.3.2.4 Third Highest Contribution

Price fairness is the predictor variable which contributes the third highest
to variation of the dependent variable (customer satisfaction) due to the
Beta value which under standardized coefficients for these predictor
variables is the third largest (0.257) in comparison to other predictor
variables (perceived service quality, price fairness, brand image).

4.3.2.5 Lowest Contribution

Perceived value is the predictor variable which contributes the lowest to


variation of the dependent variable (customer satisfaction) due to the Beta
value which under standardized coefficients for these predictor variables is
the smallest (0.121) in comparison to other predictor variables (perceived
value, price fairness, brand image).

4.4 Conclusion

In a nutshell, the respondents data which acquired through questionnaire were


summarized and the SPSS results were analyzed. The analysis was segmented into three
sections which consists of descriptive analysis, scale meaurement, as well as inferential
analysis which are Pearson Correlation Analysis and Multiple Regression Analysis. The
interpreted results will be utilized to construct the following chapter for more discussions
of the findings and research.

CHAPTER FIVE: DISCUSSION, CONCLUSION AND


IMPLICATIONS

5.0 Introduction
The results illustrated in chapter four will be explained within chapter five. The
researcher will explained the summary of statistical analysis, discussion of major finding
as well as the implication of the study. Furthermore, the researcher will also provide
recommendations according to the limitation of the current study to act as guideline for
future researchers. Moreover, there will be a conclusion which provides an insight to the
future researchers to perform their future studies towards customer satisfaction within
hotel industry.

5.1 Summary of Statistical Analysis


5.1.1 Summary of Descriptive Analysis
5.1.1.1 Respondents Demographic Profile

Within chapter four, demographic analysis is utilized to construct an


explanation of respondents characteristics. According to the demographic
information which the researcher gathered from 210 respondents, there are
55.7% of female respondents whereas 44.3% of male respondents who

contributes to the questionnaires for the percentages of gender. From the


marital status which shown that there are 54.3% of respondents were
married whereas 45.3% of respondents were single. The age of the
respondents also assessed within the descriptive analysis. Majority of the
respondents were from age group which below 21 30 years old with the
percentage of 41.4% whereas the least respondents were from age group
which above 50 years old with the percentage of 3.8%. Besides, the race
of the respondents also assessed within the descriptive analysis. The most
respondents were from Chinese race, with the percentage of 49.5%
whereas the least respondents were from Malay race with the percentage
of 19.0%. Moreover, the education qualification also shown that there are
about 45.7% is degree holder which possess the highest percentage and the
lowest percentage which is 1.4% of respondents possess PhD
qualification. Other than that, the occupation has assessed within the
descriptive analysis as well as demonstrated that 54.3% of respondents are
employee which acquired the highest percentage. The lowest percentage
which is 3.3% of respondents were possessed other occupation.
Nonetheless, the monthly income level of the respondents was shown in
the descriptive analysis. There are 29.0% possess the monthly income
level below RM1,000 which acquired the highest percentage within the
result. The lowest percentage of respondents has allocated within the
monthly income level above RM7,500 which has only 6.7%.

5.1.1.2 General Information

Among the 210 respondents, majority of the respondents were stayed at


other hotel with the frequency of 3 to 4 times in the past experience where
it obtains 43.8% of the respondents. Besides, most of the respondents have
stayed at hotel for their holiday purpose which consists of 70.0% of the
respondents.

5.1.2 Central Tendencies Measurement of Construct

According to the central tendencies measurement evaluated within chapter four,


there are total 20 questions illustrated in the questionnaire in order to assess the
four independent variables which are perceived service quality, perceived value,
brand image, and price fairness. For instance, each of the independent variable
has consists of five questions within the questionnaire. The Statistical Package of
the Social Sciences (SPSS), version 20.0 was implemented to outline the statistics
data of four independent variables which consists of the mean value, standard
deviation value as well as variance value.

For the perceived service quality attribute, the result demonstrated that the
question of The hotels employees give me prompt service. and I feel safe in
my transactions with the hotel have the same highest mean value which is 3.72.
In the meantime, the lowest mean is The hotel has operating hours convenient to
all its customers. which has the mean value of 3.50. Based on the result, The
hotel has operating hours convenient to all its customers. has the highest
standard deviation and variance which is 1.004 and 1.007 The hotel provides its
services at the time it promises to do so. obtained the lowest standard deviation
of 0.897 and variance of 0.804.
For the perceived value attribute, the result demonstrated that the question of
The hotel services fulfill my needs well. has the highest mean value which is
4.12. In the meantime, The hotel services have an acceptable standard of quality
and Using the hotel services provided by the hotel is worth for me to sacrifice
some time and efforts in purchasing. have the same lowest highest mean value
which is 3.77. Based on the result, Using the hotel services provided by the hotel
is worth for me to sacrifice some time and efforts in purchasing. has the highest

standard deviation and variance which is 1.071 and 1.146. I fell relaxed when I
use the hotel services. obtained the lowest standard deviation of 0.934 and
variance of 0.873.
For the brand image attribute, the result demonstrated that the question of I
believe that the hotel has better image than its competitors. has the highest mean
value which is 3.65. In the meantime, the lowest mean is I consider that the
hotels reputation is high. which has the mean value of 3.40. Based on the result,
The hotel brand offers good service quality. has the highest standard deviation
and variance which is 1.066 and 1.135. The hotel brand is trustworthy. obtained
the lowest standard deviation of 0.838 and variance of 0.702.
For the price fairness attribute, the result demonstrated that the question of The
rate of hotel services is reasonable. has the highest mean value which is 4.08. In
the meantime, the lowest mean is I will continue to stay with the hotel unless the
price is significantly higher as compared to other hotel. which has the mean
value of 3.88. Based on the result, I will continue to stay with the hotel unless
the price is significantly higher as compared to other hotel. has the highest
standard deviation and variance which is 0.975 and 0.951. The hotel took
effective ways to help us know its pricing policies of products and services.
obtained the lowest standard deviation of 0.748 and variance of 0.560.

5.1.3 Scale Measurement


5.1.3.1 Internal Reliability Test

The reliability analysis and Cronbachs Alpha were utilized to evaluate the
internal reliability of the five constructs which consists of perceived
service quality, perceived value, brand image, price fairness as well as
customer satisfaction. Customer satisfaction has reached the highest alpha

coefficient value at 0.925 and followed by brand image with 0.893,


perceived value, with 0.836, perceived service quality, with 0.830 and
finally would be price fairness, with 0.788. All of the five constructs are
represented as a good reliability due to their Cronbachs Alpha were
higher than 0.7.

5.1.4 Summary of Inferential Analysis


5.1.4.1 Pearsons Correlation Analysis

Based on the analysis, the four independent variables which are perceived
service quality, perceived value, brand image, and price fairness are
utilized in order to evaluate their relationship with customer satisfaction
by made used of the Pearson Correlation Analysis.

According to the Table 4.4.1.2, the result illustrated that the correlation
between perceived service quality and customer satisfaction is 0.661. This
demonstrates that a positive correlation between perceived service quality
and customer satisfaction are vary together within the same direction. This
is due to the reason that the higher perceived service quality will result to
higher customer satisfaction or vice versa. The value of this correlation
coefficient 0.661 is fall under coefficient range from 0.41 to 0.70.
Therefore, the results demonstrated that perceived service quality has a
positive relationship with customer satisfaction.

According to the Table 4.4.1.2, the result illustrated that the correlation
between perceived value and customer satisfaction is 0.611. This

demonstrates that a positive correlation between perceived value and


customer satisfaction are varying together within the same direction. This
is due to the reason that the higher perceived value will result to higher
customer satisfaction or vice versa. The value of this correlation
coefficient 0.611 is fall under coefficient range from 0.41 to 0.70.
Therefore, the results demonstrated that perceived value has a positive
relationship with customer satisfaction.

According to the Table 4.4.1.2, the result illustrated that the correlation
between brand image and customer satisfaction is 0.638. This
demonstrates that a positive correlation between brand image and
customer satisfaction are varying together within the same direction. This
is due to the reason that the higher brand image will result to higher
customer satisfaction or vice versa. The value of this correlation
coefficient 0.638 is fall under coefficient range from 0.41 to 0.70.
Therefore, the results demonstrated that brand image has a positive
relationship with customer satisfaction.

According to the Table 4.4.1.2, the result illustrated that the correlation
between price fairness and customer satisfaction is 0.602. This
demonstrates that a positive correlation between price fairness and
customer satisfaction are varying together within the same direction. This
is due to the reason that the higher price fairness will result to higher
customer satisfaction or vice versa. The value of this correlation
coefficient 0.602 is fall under coefficient range from 0.41 to 0.70.
Therefore, the results demonstrated that price fairness has a positive
relationship with customer satisfaction.

5.1.4.2 Multiple Regression Analysis

Multiple regression analysis are utilized in order to evaluate the


relationship between the four independent variable (perceived service
quality, perceive value, brand image, and price fairness) and dependent
variable (customer satisfaction), the strength of their relationships, as well
as the significance of the relationship of the five independent variables
(perceived service quality, perceive value, brand image, and price fairness)
towards dependent variable (customer satisfaction).

According to the results of multiple regression analysis within Table 4.xx,


brand image possess the strongest beta coefficient with customer
satisfaction, which is 0.313. For the second strongest beta coefficient
which possess with customer satisfaction is perceived service quality with
the value of 0.302. Thirdly, it is followed by price fairness, with the value
of 0.257. The lowest beta coefficient is 0.121 which perceived value
possessed. And hence, the result demonstrated that all the four
independent variables (perceived service quality, perceive value, brand
image, and price fairness) possess a significant relationship with
dependent variable (customer satisfaction).

Moreover, the R Square value is 0.628 and thus it indicates that


approximately 62.8% of the total variation of customer satisfaction is
explained by the four independent variables (perceived service quality,
perceive value, brand image, and price fairness). Furthermore, the
ANOVA table demonstrates that the F value of 86.529 is significant due to
the reason that Sig. lower than the alpha level of 0.05 or 0.01. And hence,
all the independent variables (perceived service quality, perceive value,
brand image, and price fairness) possess a significant relationship with

dependent variable (customer satisfaction) due to their Sig. is lower than


the alpha level of 0.01 or 0.05.

Multiple Linear Regression equation:


Customer Satisfaction, Y = -3.960 + 0.103(Perceived Value) +
0.367(Perceived Service Quality) + 0.341(Brand Image) + 0.327(Price
Fairness)

5.2 Discussion of Major Finding

Table 5.1: Summary of the Result of Hypotheses Testing


Hypotheses
Supported
The is significant relationship between = 0.611
perceived value and customer satisfaction.
p = 0.000 < 0.01
The is significant relationship between = 0.661
perceived service quality and customer
satisfaction.

p = 0.000 < 0.01

The is significant relationship between = 0.638


brand image and customer satisfaction.
p = 0.000 < 0.01
The is significant relationship between = 0.602
price fairness and customer satisfaction.
p = 0.000 < 0.01
Source: SPSS, version 20.0

Not supported

5.2.1 Relationship between Perceived Value and Customer


Satisfaction

H1: The is significant relationship between perceived value and customer


satisfaction.
According to the SPSS result from Chapter 4, there is significant and moderate
relationship be perceived value and customer satisfaction in hotel industry, with
the correlation coefficient value of 0.611 and the p-value = 0.000 which is
significant at the alpha level of 0.01. Perceived value can be referred to how
customers perceived and think about the products and services value that they
consumed. A customers perceived value towards hotel companies is crucial due
to the reason that hotel companies would like to get familiar with whether the
value they deliver to their customer can acquire higher level of customer
satisfaction. Therefore, it basically depends on the hotel companies management
on their capabilities to deliver comprehensive products and services to fulfill
customers demand. Hence, a positive feedback from a customer which brings a
meaning that the customer is satisfied with the products or services delivered. It
can be essential to acquire a positive comment and opinion from customer
because it may have an influence on other customers comments too. This
statement can be supported by Forozia, A. et al. (2013), saying that an increase in
perceived value will thus enhance the level of customer satisfaction. (Forozia, A.,
Zadeh, M.S., Gilani, M.H.N., 2013)

5.2.2 Relationship between Perceived Service Quality and


Customer Satisfaction

H1: The is significant relationship between perceived service quality and


customer satisfaction.

According to the SPSS result from Chapter 4, there is significant and moderate
relationship be perceived service quality and customer satisfaction in hotel
industry, with the correlation coefficient value of 0.661 and the p-value = 0.000
which is significant at the alpha level of 0.01. The perceived service quality is
essential in determining the satisfaction level among the customers. Hence, a high
quality of service delivered will offer a positive influence to customers
satisfaction in hotel services. Furthermore, it would bring customers loyalty
which has a critical role to encourage customer to stay with the same hotel
companies that delivered similar products and services. By this way, the hotel
companies may possess competitive position among others in the hotel industry
market. Based on the previous research completed by Ruyter, K.D.,& Wetzels,
M., (1998)

discovered that the final result proved that there is a significant

relationship between perceived service quality and customer satisfaction when


perceived service quality is a component in which consistent with final result
within the research.

5.2.3

Relationship

between

Brand

Image

and

Customer

Satisfaction

H1: The is significant relationship between brand image and customer


satisfaction.
According to the SPSS result from Chapter 4, there is significant and moderate
relationship be brand image and customer satisfaction in hotel industry, with the
correlation coefficient value of 0.638 and the p-value = 0.000 which is significant
at the alpha level of 0.01. Brand image is crucial to assess customer satisfaction
due to the reason that an effective brand image will permit customers to determine
the demands in which the brand could satisfy and also to distinguish the brand
from other rivals, and thus will also influence the potential customers willing to
purchase the brand. (Hsieh, M. H., Pan, S. L., & Setiono, R., 2004) A brand image

usually influenced by rumors or some unrealistic news that will cause negative
impact of customers confident. Hence, a hotel company may required to maintain
positive and proper brand image as a way to enhance customers confident and
trust and thus result in higher customer satisfaction. When customers are satisfied
with the brand and what does the brand can provide for them, this will certainly
boost the satisfaction level, and also will stimulate them to purchase with the
same brand again. This statement can be supported by Chang, Hsu, and Chuang
(2008), saying that an increase in brand image will thus enhance the level of
customer satisfaction. (Chang, H. H., Hsu, C. H., & Chung, S. H., 2008)

5.2.4 Relationship between Price Fairness and Customer


Satisfaction

H1: The is significant relationship between price fairness and customer


satisfaction.
According to the SPSS result from Chapter 4, there is significant and moderate
relationship be price fairness and customer satisfaction in hotel industry, with the
correlation coefficient value of 0.602 and the p-value = 0.000 which is significant
at the alpha level of 0.01. This implies that a positive perception will result to a
positive customer responds and behavior whereas a negative perception of
perceived price fairness will also create a negative behavior. Hence, if the
customer think that the price is reasonable, the customer is more likely to repeat
purchase the product or service whereas if they perceived that the price of the
product or service is unreasonable, they will tend to switch to other rivals.
Customer is likely to change to other rivals because of pricing issues appeared, for
instance, high or unfair price of the product or service perceived. (Peng, L. Y. &

Wang, Q., 2006) Hence, it is important for service provider to reasonably assess
their customers price perceptions, such as offering some attractive and reasonable
prices for service provided or lower the price of the product or service without
lower the quality of the product or service. The result of this research is supported
by Voss et al. (1998); Ti Bei, L and Ching Chiao, Y.(2001), in which price fairness
can be an essential factor in determining customer satisfaction, as well as
demonstrating that an increase in price fairness may result to higher level of
customer satisfaction.

5.3 Implications of the Study


5.3.1 Managerial Implications

Based on the research demonstrated, the researcher have discovered that there are
positive and significant relationship between four independent variables
(perceived service quality, perceived value, brand image, and price fairness) and
dependent variable (customer satisfaction) in hotel industry. Hence, the research
serves as an objective to discover and determine the hotel customer demands and
needs as well as thus assist the hotel industry to be more extensive in order to
achieve their potential customer demands and needs. The perceived service
quality, perceived value, brand image, price fairness were essential and significant
to assist hotel industry to enhance their customer satisfaction as well boost the
hotel facilities and services to be more effective and comprehensive.

5.3.1.1 Perceived Value

Furthermore, perceived value should also be considered to enhance the


efficiency and effectiveness of hotel services, and thus result in the
improvement of customer satisfaction. The hotel managements should
always assess the quality of the hotel services which provided to potential
hotel customers and improve any services clauses to fulfill customers
expectations and demands. Perhaps the hotel companies management may
also deliver their sincerity towards their customers for instance giving free
ticket to their customers to invite them to enjoy the hotel facilities and also
give away celebration card or vouchers during festive seasons. The hotel
companies may also maintain good relationship with their customer by
having adequate and professional interaction between their employees and
customer as well as enhance their hotel facilities and equipments in order
to boost positive and satisfied experience when customers stayed at their
hotel. Through this way, the hotel customer may feel warm and being
treasured and hence will repeat purchase from the particular hotel
companies.

5.3.1.2 Perceived Service Quality

The hotel industry management should improve the performance of their


employees in order to attain the high efficiency and effectiveness service
standard. The hotel company may provide the employee award system, for
instance, offer commission or bonus point as a reward to the employee
who attained the adequate performance which fixed by the hotel
management. Through this way, it may stimulate and encourage the hotel
employees to treat and serve their hotel customer well and try their best to

fulfill customers needs. Nonetheless, hotel company managements also


ought to adapt with advanced technologies and thus implement into hotel
services in order to enhance the reliability and efficiency of hotel services.
If hotel companies management is able to offer adequate products and
services to their customer, they will certainly be satisfied and thus may
also stimulate repurchase intention towards the particular hotel companies.

5.3.1.3 Brand Image

The research proved that brand image positively affecting the customer
satisfaction in hotel industry. It can be crucial for the hotel companies to
construct and pursuit positive recognition as well as reputation in
customers perception. It is essential for hotel management to provide
excellent services to their customer in order to stimulate a positive brand
image within customers minds. Hence, the hotel companies management
should take effort to enhance their positive brand image towards
customers as a way to improve customer satisfaction. Furthermore, hotel
must develop a distinctive and positive image, by engage in sincere and
professional communication with customers and also to understand
customers demand and try to fulfill them, thus will enhance the
customers impression and lead to positive companys brand image. In
supporting to that, hotel should also develop a long-term relationship with
customers, and enhance with more differentiation strategy of a hotels
image in order to differentiate the particular hotel company from other
rivals. For instance, the hotel company should develop a positive brand
image by implementing multiple media channels to promote their brand
image and thus to enhance their reputation such as, Facebook and Twitter.

5.3.1.4 Price Fairness

According to the research, it has been proven that price fairness can be
evaluated as a foundation to which customer satisfaction within hotel
industry. It also proved that satisfied customers demonstrate high
willingness to repurchase the product or service if they feel that the price
of the product or service is reasonable. Thus, hotel companies
management should concentrate to pricing issues as well as price charges
which will directly affecting the customers perception. Moreover, hotel
companies management should also concentrate pay attention to the
attributes which can affect the perceived price fairness, this will also
enhance the customer satisfaction regarding to the result that proven
increase of price fairness will thus lead to customer satisfaction. Several
practices may be implemented for instance, discounts allowed as well as
no premium prices or hidden surcharges allocated. Besides, the hotel
management should also concentrate on how customers view the hotel
pricing strategy and thus allocate their pricing strategy carefully towards
their products and services, and this will also lead to increase on perceived
price fairness. For instance, the price of hotel rooms and services should
be allocated within a reasonable manner, in which the potential customer
will prefer the hotel services as compared to other rivals hotel services
because they perceived that the price of product and service is reasonable
and fair.

5.4 Limitations of the Study

There are several limitations that the researcher discovered throughout the research. First
and foremost, the respondents bias was identified during the process of collecting
information. This condition happened might due to the reason that respondents may not

willing to take part in the questionnaires because they might feel that respond to the
questionnaire can be time-consuming and there are not generate profit and welfare for
them. The researcher found that the inactive and perfunctory attitude of the respondents
may cause them to deliver inaccurate answer within the questionnaire. And this will lead
to the situation that restricted the researcher to acquire the accurate information which
related to the research.

The researcher found that one of the limitations may due to location coverage. The
questionnaires that the researcher disseminates to public for the data collection is
primarily concentrate on Ipoh area. Therefore, the outcome that the researcher discovered
may not able to represent the respond of large community. The researcher found that it
will enhance the study in the case that if more opinion of respondents can be gathered to
increase the accurateness of the research. The result that the researcher interpreted
according to 210 sample size which might be consider less reliable. The larger the sample
size of research, the more accurateness the result evaluated.

Furthermore, the researcher also discovered language barrier during the process of
collecting information from the respondents. There is a condition happened where
respondents may not comprehend or understand the questionnaire properly. Due to the
reason that the diversified respondents may not understand those questions which was
written in English language. The condition may happen where the respondents may
comprehend the questions in wrong direction and respond with inaccurate answer when
they complete the questionnaire. And this will result to missing data and misinterpretation
of the questions which lead to inaccurate statistic within the research.

5.5 Recommendation for Future Study

There are several recommendations and suggestions for future research that implemented
in order to resolve issues and concerns according to the limitations within the research.
The future researcher may construct his/her questionnaire in different languages for
instance, Chinese and Malay language instead of only focus on English language.
Through this approach, it will assist the future researcher in data collection due to the
reason that respondents may provide more reliable answer as they can fully understand
and comprehend the questionnaire.

For the limitation of location coverage, the data of the research was gathered from Perak,
thus the data collection should be opening to more location but not only limited at Perak
area as a way to decrease the bias of the result and enhance the accuracy of the data. And
hence, the future research may concentrate on a larger sample in which their
questionnaire may be disseminating to more respondents in other countries in Malaysia.
Through this approach, the data collected from the larger nation will hence provide more
reliable and accurate statistics from the respondents.

Besides, the limitation of questionnaire which generates inaccurate outcome and


respondents bias may be solved by implementing other data collection approaches. For
instance, one of the recommendations will be using interview method as a tool to acquire
reliable as well as unbiased result for the research. Through this approach, the future
researcher may able to comprehend more the opinion of respondents about what they
really demand and think about as well as thus enhance the accuracy of the information
collected during the process of interview.

Furthermore, the research contributes a limitation in which there are other factors that
affecting the customer satisfaction in hotel industry have not been evaluated. The future
researcher may assess in other related attributed for instance, corporate image, consumer
loyalty which might contribute to customer satisfaction in hotel industry.

5.6 Conclusion

In a nutshell, the attributes which examined within the research which are perceived
service quality, perceived value, brand image, price fairness that affecting the customer
satisfaction in hotel industry. Based on the research finding constructed within Chapter 4,
brand image is a predictor variable which contributes the highest to variation of customer
satisfaction. The subsequent affecting variables are price fairness, perceived value, and
perceived service quality. And hence, hotel industry should be concentrate on these
variables so that customers demands and satisfaction can be achived. If hotel industry
failed to achieve this attribute, their potential customers may feel less confidence towards
the hotel company and might convert to other competitors. Furthermore, the research also
constructed the implications and limitations of the research, as well as provide with
recommendations for future research of the research.

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