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2nd INTERNATIONAL CONFERENCE ON MANAGEMENT

996 (2nd ICM 2012) PROCEEDING


11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA
ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

GUEST SATISFACTION AND LOYALTY IN FOOD AND BEVERAGE SERVICE


DEPARTMENT IN THE HOTEL INDUSTRY
Ala`a Nimer AbuKhalifeh
School of Housing Building and Planning,
University Sains Malaysia
abukhalifeh.alaa@yahoo.com

Ahmad Puad Mat Som


-School of Housing, Building and Planning, University Sains Malaysia, Malaysia
-Sustainable Tourism Research Cluster (STRC), Universiti Sains Malaysia, Penang
puad@usm.my

ABSTRACT

Guest satisfaction and guest loyalty in the food and beverage (F&B) service in the hotel industry of
Jordan have been recognized as the dominant factor in the success of this sector. This study may be
helpful for researchers and scholars in understanding the relationship between guest loyalty and
satisfaction and the image of the F&B department. The main purpose of this study is to identify the
factors of image and guest satisfaction that are positively correlated to guest loyalty in the F&B service
via a literature review and guest satisfaction theory; the implications for the F&B department in
Jordanian hotels are also discussed..

Field of Research: Guest satisfaction, Guest loyalty, Food and Beverage service, Hotel industry,
Jordan

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1. INTRODUCTION

The hotel industry today has been recognized as a very large industry in the entire world. (Kundampully
and Suhartanto, 2000)The use of hotel facilities Such as night clubs, room services, restaurants, bar,
banqueting have become a basic component of lifestyle for many guests. It is now largely accepted
among scholars and researchers that guest satisfaction and guest loyalty are one of the most
fundamental factors deciding the conclusive appropriateness of the hotel industry (Acharya , Sengupta ,
& Mishra 2011). One of the largest challenges facing food and beverage department in hotels today has
been the ever growing competition (Karatepe & Ekiz, 2004; Kundampully & Suhartanto, 2000;
LitsBarker, & Kundampully 2003) this has its main implications for the guests providing a range of
choices , increasing value for money and enhancing the level of services offered which helps us to
differentiate one hotel products and services from else. (Acharya et al., 2011; Kundampully &
2nd INTERNATIONAL CONFERENCE ON MANAGEMENT
997 (2nd ICM 2012) PROCEEDING
11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA
ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

Suhartanto, 2000) Therefore there are two important points mostly used by the hotel management in
plan strategy namely, competitive advantage and service quality (Acharya et al., 2011; J. D. Barsky &
Labagh, 1992; Kundampully & Suhartanto, 2000)by looking at the works of Barsky and Labagh,(1992);
(Kozub, 2008; Kundampully & Suhartan, 2000)say that,providing unique hospitality to guests can be
attained through developing their satisfaction and loyalty, attaining a low-cost payment through a
discounted pricing strategy of hotels with reasonable and excellent services management. (Kundampully
& Suhartanto, 2000; Susskind, 2010) As a consequence, quality of food and beverage service for the
price paid has become the key to the hotel's ability to provide good service to guests and differentiate
itself from its other hotels by enhancing guest satisfaction as well as guest loyalty. Many scholars
discuss the necessity of the food and beverage department in the hotel industry development to
achieve guests' satisfaction and loyalty. (Ghani et al., 2011; Guzzo, 2010; Kundampully & Suhartanto,
2000; Tideswell & Fredline, 2004) Hence a greater concern for building guests' satisfaction and loyalty is
not only important but also has become obligatory for Food and beverage managers for their survival
and growth in such a fierce competitive environment therefore, The current study aims to assist the
food and beverage service managers and employees by addressing a review of literature to find out the
various antecedents of guest loyalty and help them implement the necessary strategies to ensure an
increased level of brand loyalty from the existing. This study suggests a Theoretical Framework for the
relationship between guest satisfaction and guest loyalty in food and beverage service department in
the hotel industry in Jordan.

2. A REVIEW LITERATURE AND CONCEPTUAL FRAMEWORK

1.2 Guest Satisfaction

Guest satisfaction plays the main role in the hotel industry especially in food and beverage service
department (Baig & Khan, 2010; Edvardsson, Johnson, Gustafsson, & Strandvik, 2000; Gustafsson &
Johnson, 2004; Kozub, 2008; Novikova, 2009), As the hospitality service industry has attained drastic
importance at the present time, scholars have made great studies to define and understand the guests'
satisfaction from the guest's perspective Kozub,(2008) . They need to understand what truly keeps
guests satisfied has led to increase the number of studies of literatures about guest satisfaction and
how employees of food and beverage service department can make guests satisfied and the effects that
it has on today’s business (Barsky & Nash, 2002; Kozub, 2008; Oliver, 1997 p. 13) . However, R.L.
Oliver,(1981) defined satisfaction as an evaluation of the surprise inherent in a product acquisition
and/or consumption experience. Oliver,(1997 p. 13), “clarified satisfaction when He stated. ” ,
satisfaction is a refined fulfilment response, It is a judgment given after the using a product, service
feature or service itself is provided in a pleasurable Level of consumption-related, including levels of
under-or-over fulfilment. This defines that the customer satisfaction is arguably defined after the
outcome of any marketing into businesses, acquiring a high market share for improved long term
profitability is the main reason why marketers seek to develop and maintain a healthy loyal customer
base. Fornell,(1992), discuss satisfaction as the cumulative overall evaluation of a customer’s purchase
and consumption experience based on numerous interactions between the guests and the service
provider, to support the importance of cumulative satisfaction. Cronin and Taylor,(1992 ), defined that
customer satisfaction directly leads to purchase intentions. Salazar, Costa, and Rita,(2004) studied the
relationship between Service Quality and customer satisfaction and behavioral intentions on the
hospitality sector.
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998 (2nd ICM 2012) PROCEEDING
11th - 12th JUNE 2012. HOLIDAY VILLA BEACH RESORT & SPA, LANGKAWI KEDAH, MALAYSIA
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2.2 Guest Loyalty

Many studies have been conducted in service organizations and hotel service industry to allocate
substantial resources to measure and monitor the quality services, satisfaction and loyalty in an effort to
bring back the guests and improve service Offering, and discuss dimensions of loyalty. (Acharya et al.,
2011; Hu, Cheng, Chiu, & Hong, 2011; Karatepe & Ekiz, 2004; Kozub, 2008; Kundampully & Suhartanto,
2000). There are many definitions of guest loyalty from researchers that make the overall concept and
the ability of measuring the guest loyalty in the hotel industry. Defined the guest loyalty as the
combination of repeat purchases from one service provider or brand coupled with the guest
psychological attachment toward the provisional. Newman and Werbel,(1973), defined loyalty as those
who repurchased a brand, considered only that brand, and did no brand-related information seeking.
Jacoby and Kyner,(1973) , discuss that the only way to understand guest loyalty was to examine the
belief, attitude and the cognitive structure of the guest. Therefore, the guest was able to become loyal
first in a cognitive sense, then later in an affective (attitude) sense and finally in a behavioural sense.
Getty and Thomson,(1994), explained about the guest loyalty and defined two dimensions of it, the
attitudinal dimension and behavioral dimensions referred which is infact the intentions of the guest to
repurchase and advocate about the service provider. Dick and Basu,(1994), found that customer loyalty
was viewed as the strength of the relationship between a customer’s relative attitude and regular guest.
However, the study done by Bowen and Shoemaker,(1998), has indicated that behavior dimension
refers to the intention of repurchase from the service provided by the guest on account of superior
preference towards that service provider which he/she holds in her mind over a period of time. Lee et
al.,(2003) , studied the technology, service quality, and customer loyalty in Australian hotels with the
main aim of investigating the effects of various organizational responses to complain about post-
complaint customer behaviors. Kundampully and Suhartanto,(2000) addressed the role of customer
satisfaction and image with the study objective to assist the hotel industry managers to implement the
had dealing with the concept of guest loyalty and satisfaction in the hotel strategy. Susskind,(2010)guest
service management and processes in restaurants to discuss the guest satisfaction and increased focus
on the scientific aspects of the subject to help restaurateurs improve their operations arrival to the loyal
customers with good service . Gentry and Kalliny,(2008), explained consumer Loyalty in a synthesis,
conceptual framework and research propositions to elaborate on the definition of consumer loyalty and
discuss the probable factors of loyalty within a single framework.

3. RELATIONSHIP BETWEEN GUEST SATISFACTION AND GUEST LOYALTY

Guest satisfaction is a business philosophy which tends to the creation of value for customers,
anticipating and managing their expectations, and demonstrating the ability of responsibility to satisfy
guests. Quality of service and guest satisfaction are critical factors for success of any food and beverage
department (Parasuraman, Zeithaml, & Berry, 1988). Hallowell,(1996) looked through the relationships
between guest satisfaction and guest loyalty and proved that the customer satisfaction relates to
customer loyalty. Getty and Thomson,(1994) verified the relationship between quality of logging guests
satisfaction and showed the effect of the same on guest intentions to recommend the lodging of
perspective guests. Zeithaml and Bitner,(1996) revealed the relationships between guest
satisfaction,image,loyalty both positively and negatively. The relationship between food and beverage
service department and guest satisfaction on customer loyalty is shown in figure1.
2nd INTERNATIONAL CONFERENCE ON MANAGEMENT
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ISBN: 978-967-5705-07-6. WEBSITE: w w w . i n t e r n a t i o n a l c o n f e r e n c e . c o m . m y

3.1 Theoretical Framework

Figure 1: Theorical Framework of the study : The relationship between food and beverage service
department and guest satisfaction on customer loyalty.

The above theoretical framework has been developed from the work of Kundampully and
Suhartanto,(2000) , Acharya et al.,(2011) and Kozub,(2008) and adapting suggestions of literature to
introduce a complete framework of all aspects involved in guest satisfaction and food and beverage
services which will lead to the guest loyalty.

4. METHODOLOGY

This paper is based on the conceptual studies and data collected from the published reliable sources
within and also outside the food and beverage service department to show a direct effect of service
quality and guest satisfaction which are still the subject of debate on guest loyalty.

Table 1: Studies of antecedents and consequences of literature review

Author(s) Purpose Sample/setting Method/analysis Key findings

Acharya et al., (2011) To explore customer Two samples from 5-point scales, were This study’s findings
loyalty and two different fast employed to assess imply that
satisfaction in fast food restaurants’ the variables: restaurant’s image
food restaurant Customers customer satisfaction, and customer
customer loyalty , and satisfaction with
hotel image reception, food &
beverages,
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housekeeping and
menu price are highly
influential in
determining customer
loyalty.

Kozub, (2008)

To Investigate the 519 guests from five Survey/ The findings of this
quality complaint Luxury hotel questionnaire. study revealed a
management properties located unique relationship
across the United between pre-failure
Employee and States. loyalty and emotion
evaluate service with on-going
failures, and guest satisfaction, post-
satisfaction and recovery loyalty and
loyalty the customer FBI
toward the hotel.

Kundampully and To identify the Guests Simple regression


Suhartanto, (2000) relationship between analysis
guest satisfaction and The findings indicate,
guest loyalty and the hotel image and
image in the hotel customer satisfaction
industry. with the performance
of housekeeping, food
and beverage
department, and the
price is positively
connected to
customer loyalty.

Novikova, (2009) To examine customer Customers / Employee T-Test/ questionnaire The findings of this
satisfaction factors study have found that
and employee 5-point Like scales and satisfaction with
satisfaction in the interview. housekeeping is the
hospitality industry most significant factor
to determine
customer loyalty. This
study found that
Satisfaction with room
division's area, which
includes
housekeeping,
received the highest
overall mean scores
for both of the hotels.
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Baig and Khan, (2010) To discusses how Guests Secondary Data / Describes emotional
emotional satisfaction literature review satisfaction having a
has an effect on brand direct impact on
loyalty in the brand loyalty and

Hospitality industry Demands the need for


and development accounting for
framework. emotional satisfaction
surveys as part of
standard customer.

Salazar et al., (2004) To test the Guests T-Test/ questionnaire Data analyses showed
relationship between that service quality
service quality and And regression influences guest
guest satisfaction equation.
Satisfaction and the
And behavioural intention to return to
intentions in the the hotel is partially
hospitality industry. (41%) influenced by
the quality of the
service provided and
by the guest
satisfaction, and the
intention to
recommend the Hotel
is strongly (73%)
affected by the
satisfaction with the
stay.

Hallowell, (1996) To illustrate the Guests/ 12,000 retail- Questionnaire Data analysis
relationship of banking customers
profitability to Provides an indication
intermediate, At 59 divisions of the increase in
(geographic business profit resulting from
Customer-related units composed of an improvement
outcomes that multiple branches)
managers can In customer
influence directly satisfaction only if the
causality hypothesized
(Customer satisfaction in the service
customer loyalty
profitability) Management
literature exists, if
environmental and
technological

Conditions remain
essentially stable.
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Susskind, (2010) To discuss the guest Guests/ Employee Literature review The findings are three
service management topics which discuss
and Processes in Service Process
restaurants, and management and
explaining the guest satisfaction,
elements beyond the guest-server-
food itself that go into exchange, complaints
a successful and complaint
restaurant operation. management.
A particular element
in guest satisfaction is
the extent to which
employees believe
that their restaurant
maintains service
standards.

Ghani et al., (2011) This study examines Student/ Guests Questionnaire / Revealed that food
the students’ satisfaction and and beverages and
acceptance level and loyalty Survey. service attributes are
satisfaction of the the major
service delivery determinants looked
at by students when
dining at UITM hostel
cafeterias and they
had the same
expectations

As other restaurant
customers. They
expect decent food
and beverages with an
acceptable degree of
quality Service.

Tideswell and Outlining the results Guests Questionnaire The findings of this
Fredline, (2004) study clearly showed
By research conducted that from a group of
with 2,000 5-star hotel guests Whom could
guests to establish be considered to have
how frequent guests some degree of
are being presented behavioural loyalty to
at the Gold Coast, a hotel property,
Australia perceived there are differing
the current degrees of attitudinal
effectiveness of the loyalty to the hotels,
marketing and found the gap and
analysed guest
Strategies used to loyalty.
create guest loyalty.

Gentry and To test a model Guests Literature review Review of the


Kalliny,(2008) consumer conceptual literature showed
framework, and very Little progress in
approximately eighty
Research propositions years of research. In
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and loyalty emotions this study, the authors


and factors proposed a
conceptual definition
of consumer loyalty,
synthesized and
discussed the
probable factors of
loyalty within the
same framework.

Guzzo,(2010) To evaluate the Guests Interviewed / 100 Analysis of the


overall customer customers sporting Hotel of
satisfaction level for Cefalù (IT) shows that
the hotel and for each the level of customer
satisfaction is good
Service supplied. We
conclude discussing Both are considered in
the result and the overall evaluation
proposing and the single services
improvement in (6 out of 8 of the
customer satisfaction single aspects
examined).
Management of the
hotel. Human resource
management in
particular results to be
especially effective in
entertainment and
restaurant service
perception of the gaps
we found in each
room service.

Barsky and To test hotel’s Guests Survey. The finding of this


Nash,(2002) customer-satisfaction study , discus guest
strategy. satisfaction , and
developing a strategy

Framework and
segmentation
analysis.

Hu et al.,( 2011) To examine how Guests Questionnaire The finding suggests


overall customer that hospital
satisfaction and managers should
customer loyalty identify and
associate with the emphasize the
medical service relevant one-
quality attributes dimensional and
offered in Taiwan attractive attributes
using Kano’s
integrated, and test So as to increase
model and the patient satisfaction
customer satisfaction levels. Other findings
Index model. reveal new insights for
researchers
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Concerned with the


quality of medical
services offered in
Taiwan, as well as for
hospital managers
who

Must distribute their


limited resources in
order to achieve the
highest possible
patient satisfaction.

Lee et al.,(2003) To examine the Guests / Employees Questionnaire The analysis


perceptions of technology found to
international hotel have affected the
manager on the ability of hotels to
adoption of assist employees,
technology in their increasing the quality
hotels. of service, enhance
efficiencies, and
sustain the
relationship with
guests.

Karatepe and To investigate the Guests Questionnaire The study uses a


Ekiz,(2004) effects of apology,
Sample of Turkish
Atonement, guests in the Northern
promptness, Cyprus hotel industry.
facilitation,
explanation, The hypothesized
attentiveness relationships are
tested using LISREL
And effort on
complainant Through path analysis.
satisfaction and The results provide
loyalty, and the empirical support for
ten of the 15
Relationship between hypotheses examined.
guest satisfaction and The path analysis
loyalty. And to test reveals that
the conceptual model
Apology, explanation,
and effort are three
organizational

Response options that


exert significant
positive effects on

Complainant
satisfaction and
loyalty.
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5. FINDING AND DISCUSSION

The following Table 1 is showing the summary of the literature review used in this study. The key items
were adopted from previous studies by Kozub,(2008), Simpson,(2009), Kundampully and
Suhartanto,(2000), Susskind,(2010), Ghani et al.,(2011) . According to the above table Customer
satisfaction and loyalty is highly discussed topics today both in Theories and practice and they may
become even more important in the near future. That is why these study findings may be valuable for
future research. At the present time hotel industry in Jordan needs to concentrate more in both guest
satisfaction and loyalty to gain, positive repeated guests; food and beverage service growth; increase
profitability; image, word of mouth and good employees in F&B department.

Consequently the discussion of literature and findings may be used by hotel managers to identify their
hotel’s goals and plan for future improvement. The table analysis of customer satisfaction factors may
be adapted by various hotel sectors and not only food and beverage department. The analysis of
literature satisfaction and loyalty may raise the awareness of special challenges in particular
Departments for improving customer service, and highlight issues in good service. Hotel managers
should also take note of a key finding in this study which is customer and loyalty guest. This study found
that very little research has been conducted on guest satisfaction and loyalty in the Jordanian hotels. All
the findings and the framework suggested are vital for the food and beverage department and essential
for all hospitality businesses.

6. CONCLUSION AND FUTURE RECOMMENDATION

Although all the findings from the discussion and the table shown is derived from the analysis of
literature review, the challenge of ensuring that the guests are provided with the best quality service of
the food and beverage department is still remaining in the hotel industry. All guests demand for
receiving good quality service and value for their money while using the facilities of employee service
provider. In the hotel industry, it is known that the guests always seek for great value service. However
this study has been conducted to examine the current state of information about guest satisfaction and
guest loyalty in the hotel industry and F&B department through a review of the the literature review
highlights the most important subject in this area of guest satisfaction and guest loyalty research and
focuses on the determinants and consequences of guest satisfaction and loyalty on food and beverage.
The finding from literature review provides hotel management and F&B department in the hotel
industry with information how to satisfy the guests and how to make loyal guests from the hotel.
Several similar studies should be conducted about the customer’s level of satisfaction in hotels of Jordan
to survey and understand the methods and further solutions to improve the quality of service which
makes the costumers go back to the same hotel again and again. The study of the relationship between
customer satisfaction and service quality in the Jordanian hotels are highly recommended to examine
the level of service quality and the level of loyalty, the type of customers, and customer satisfaction in
all segments of the food and beverage department.
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ACKNOWLEDGEMENT

The authors would like to extend their appreciation to Universiti Sains Malaysia for the Research
University’s Grant under Sustainable Tourism Research Cluster entitled 'Tourism Planning' [Grant No.
1001/PTS/8660013] and university's fellowship scheme that make this study and paper possible.

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