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LITERATURE REVIEW

Ruth N. Bolton and James H. Drew in the paper titled Linking Customer Satisfaction toService Operations and Outcomes (1994). The authors believe that the Organizations havetraditionally managed services by manipulating engineering and operational attributes and

observing market outcomes. In recent years, customer satisfaction ratings have become animportant component in this process. Hence, managers are keenly interested in the effect ofservice changes on customer satisfaction, customer behaviour and revenues. This chapterdevelops a framework that describes the theoretical relationships among service operations,customer assessments and market outcomes. It also discusses the methodological andmanagerial issues that tend to arise during an investigation of these relationships. Then, threecase studies are described: a model of aggregate customer complaint behaviour, a model of

perceived service quality and a model of customer satisfaction with a specific serviceencounter. They are used to illustrate how the effects of service changes can be examined byestimating statistical models based on company records and survey data. The advantages anddisadvantages of different approaches are outlined.

David L. Jones, Brenda Mak and Janet Sim in the paper A New Look at the Antecedents andConsequences of Relationship Quality in the Hotel Service Environment (2008) explains thatas economic conditions improve, hotels are investing in new ways to improve service qualityand perceived value that hopefully will lead to better customer satisfaction and loyalty. Thisstudy took a new look, with newly developed scales, at the antecedents and consequences ofrelationship quality in the hotel service environment to shed new light on the factors hotelshave to deal with to achieve their objective of satisfied and loyal customers. Using astructural equation model, it was determined that the tangible and intangible factors of

perceived value, timeliness, and hotel facilities are antecedents of hotel quality. Hotel quality,subsequently, is a determinant of both customer satisfaction and loyalty. However, consistentwith previous research, customer satisfaction is not a guarantee of customer loyalty They alsosay high relationship quality means that customers can rely on sellers Integrity (i.e., thehotel and its employees) and can be confident of sellers Future performance because their

past performance has been consistently satisfactory. What they also say they have to confirmin this study are the antecedents and consequences of relationship quality with hotel service.Those antecedents and consequences include the attitudes toward the service quality and

perceived value being delivered by a hotel, the perceived satisfaction with the hotel, and theloyalty of the customer to the hotel. While previous studies have attempted to address thissame issue in the hotel service environment, it has also been suggested that the antecedents of

customer loyalty will change over time (Shoemaker & Bowen, 2003).Therefore; hotels mustconstantly update their knowledge of customer Attitudes toward service quality and value .

J. Vijayadurai in the paper Service Quality, Customer Satisfaction and Behavioural Intentionin Hotel Industry tells that attracting new customers alone is insufficient, as the managementmust concentrate on preventing customers -exit since the cost of attracting new customers ishigher than the cost of retaining existing customers. The key to customers retention iscustomer satisfaction and loyalty which is largely dependent upon the service quality offered

by the hotels. In this juncture, the present study has made an attempt to fulfil the followingobjectives:

mers satisfaction and their behavioural intention and

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behavioural intention.

After globalization, service sector has been emerging as the growth of hotels has beenwitnessed dominant component of the economy. The to face the major challenge of

improving strong economic growth, increased quality of the service offered, in order todisposable income, urbanization and the attract a large number of domestic and impact ofvarious factors have fuelled a foreign customers. Attracting new strong need for tourism inIndia. They say The hotel customers alone is insufficient, as the business being acomparatively low entry management must concentrate on preventing customers -exit sincethe cost of attracting new customers is higher.

Rossomme, Jeanne in the paper titled Customer satisfaction measurement in a business-to- business context: a conceptual framework (2003) explains that the Customer satisfaction is basically the principal tool which is used to measure the relationships between theircustomers. In practice they use the firms measure the customer satisfaction using the variousmodels and theories developed for evaluating the various perceptions of the individualcustomers rather than the entire organizations. This paper develops an integrated model ofcustomer satisfaction measurement specific to a business to business context and addressesthe unique challenges inherent in this context by incorporating the learnings fro m the fieldsof customer satisfaction and organizational buying behaviour and relationship marketing. Thechallenges has cited many limitations with regard to this topical area .The organizationalresearch basically focuses on the purchase decision process with little emphasis on postchoice consumption.The problems which are related states that when applied in a business to business context firstmany client employees will not have direct consumption experience with the product onservice which to base their satisfaction judgments. Second, in addition to the psychological or

personal dimension reflected in this definition, business customers incorporate concrete,rational objectives directly related to the execution of a particular business function in theirsatisfaction judgment process .The CSM instrument, therefore, must measure those elementsof satisfaction relevant to each client contact. The paper illustrates practical uses of the modelas a Managerial tool for framing a system of customer satisfaction measurement.

Everlyen J.Kangogo in his paper titled Effect of Customer Satisfaction on Performance of theHotel Industry in the Western Tourism:mentioned that hospitality sector is part of a hugegroup of travel and tourism industry is one of the fastest growing industreis that provide thenecessary and desirable goods and services to traveller worldwide.Sriyam(2010) points out

that guest satisfaction in the hotel industry is the higest proirity for owners and managerscompeting with hundres of others,because personal services are at the top of the travellers listis the most important thing when considering a hotel to stay in.Tailoring of customersservices has seen more and more customers switch from one service provider to another,thisis seen especially in the hotel sector where guest prefer a high level of service,and individualrequirement are therefore much differentiated.

David Foster in his paper titled Measuring Customer Satisfaction In The Tourism Industry:mentioned it seeks to explore the rationale for, and difficulties of operationalising, themeasurement of tourists satisfaction with their experiences in particular destinations .It suggests that the on-going systematic measurement of satisfaction with destinations is a

valuable exercise that will have tangible benefits, but acknowledges the difficulties of doingthis in a meaningful manner. The principal argument presented is that the measurement of

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tourists satisfaction with a particular destination involves more than simply measuring thelevel of satisfaction with the services delivered by individual enterprises.

Gandolfo Dominici and Rosa Guzzo in the paper Customer Satisfaction in the Hotel Industry:A Case Study from Sicily (2010) In order to be successful in the market it is not sufficient to

attract new customers managers must concentrate on retaining existing customersimplementing effective policies of customer satisfaction and loyalty. In hotel industrycustomer satisfaction is largely hooked upon quality of service. A management approachfocused on customer satisfaction can improve customer loyalty, thus increasing the positiveimage of the tourist destination. Hence, exploring the importance for customers of hotelattributes in hotel selection is indispensable. Research on the topic of guest satisfaction,which translates into the consideration of whether or not customers will return to a hotel oradvice it to other tourists, is pivotal to the success of the hospitality business. Neglecting to

pay attention to those hotel attributes considered most important by guests, may lead tonegative evaluation of the hotel, thus restricting the chance of repeat patronage.

Prof. Dr. Md. Zabid Abdul Rashid in the paper titled Customer satisfaction and customerloyalty in hotel industry (2011) explains that the Evaluation of customers perception andsatisfaction of service quality is widely acknowledged as being a favourable strategy in thehotel industry. This research aims to provide an assessment of service quality suggested inthe European Perspective by empirically examining hotel guests perception of process (orfunctional) quality and outcome (or technical) quality; and the relationships between the

perceived service quality, customer satisfaction, corporate image and customer loyalty in theMalaysian hotel industry. The data was collected through self-administrated questionnairefrom 500 hotel guests using systematic sampling approach. Structural Equation Modelling(SEM) was used to analyse the reliability and validity of data and the hypothesisedrelationships in the proposed research model. The findings for this study showed that processquality and outcome quality had positive impacts on guest satisfaction. This study also foundthat customer satisfaction and corporate image play significant roles in building a strongcustomer loyalty base. Another noteworthy finding was that corporate image served as a

partial mediator in the relationship between customer satisfaction and customer loyalty.These findings would help hotel operators formulate and implement effective marketingmanagement strategies to not only cope with the keen competition in the hotel serviceindustry but also boost their profit margins.

Linda I. Nowak in the paper Antecedents to client satisfaction in business services (1998)explains that in todays increasingly competitive environment, it is important to measure the

service firms performance in the areas which contribute most significantly to the clientsoverall satisfaction. Previous research indicates that marketing research clients are concernedwith a research providers performance in four areas; product quality, service quality, costmanagement, and timeliness. A survey of 155 marketing research clients indicated that theseclients perceive product quality as being most important in accomplishing their researchobjectives, followed in order by service quality, cost, and timeliness. The results of the studyindicate that less than half of the clients were completely satisfied with the ability of their

primary research supplier to save them money or to provide them with a useful analysis. Aresearch provider that is capable of improving performance in these two areas may be able tocreate a competitive advantage that could lead to increased client satisfaction and improvedcustomer loyalty.

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