Impact of Service Quality & Customer Satisfaction on Firm's Competitive Advantage: Empirical Evidence from Pakistan Hotel Industry

Abstract

The study aim was to evaluate customer perception/expectation of quality service in hotel industry of Pakistan and to examine the influence of attributes of quality services on satisfaction of customer and performance of business. Moreover, to compare the mean score difference about the customer views of diverse hotels located in Pakistan. This study was positivism (quantitative) in nature and the universe of the study was hotels and restaurants of Pakistan. The population was comprised of customers of hotels and restaurants located in diverse location of Khyber Pakhtunkhwa (KP), Punjab province and Islamabad, Pakistan. The data was collected from hotel customers, general managers and sales managers. Amid customers total 1600 questionnaires were circulated, amid general managers and sales managers total 80 and 178 questionnaires were distributed by using stratified random sample technique. The collected data was analyzed by SPSS and LISREL software.Research study found that service quality attributes i.e. actual and expected (empathy, tangibility, assurance, responsiveness and reliability) has significant constructive predictor of customer satisfaction and business performance and customer satisfaction was also found significant constructive predictor of business performance. Moreover, the significant difference was found amongst the mean of Islamabad, KP and Punjab consumers on attributes of quality service. Study subsidizes tentatively and kinesthetically to industry of hotel and satisfaction of consumer in Pakistan that is sustained and reinforced by the experiential proof and study could assist the hotels of Pakistan’s to enhance performance of hotel businesses via enlightening their quality service attributes including (empathy, tangibility, assurance, responsiveness and reliability) for their customer satisfaction that ultimately effects on business performance. The study emphasize on the importance of service quality attributes to ensure the availability of substantial number of customers for the enhancement of hotel business performance in Pakistan.