Val Ta Dasilva

hot
2014
The Impact of Service Quality on Customer

Satisfaction in a Dublin Hostel - Case Study
National College of Ireland
Higher Diploma in Science in Data Analytics
Student Name: Valter Jose Marques da Silva

Student Number: X13118595
Date: 22/05/2014
Executive Summary
The tourism and hospitality industry are one of the most profitable industry in the
world and has been responsible to generate approximately 180 thousands job positions and
produce around 5 billion a year in revenue from home and abroad, approximately 3% of
GDP(CSO, 2012) in Ireland. These industries have been marked by the competitive
environment and its scenario requires that companies provide high level of service quality as
a differentiation between competitors with the purpose to satisfy the customers.
The purpose of this research is to examine the impact of service quality dimensions
including, tangibility, reliability, responsiveness, assurance and empathy, on customer
satisfaction in a Dublin hostel.
The research are based on quantitative methods using online survey to conduct the
hypothesis test among 324 guest of hostel with the purpose to identify the customers
perceptions based on the service offered and the impact on customer satisfaction.
The finding of this research state that the dimensions of service quality, tangibility
and assurance has influence on customer satisfaction in a hostel industry and these findings
reinforces the need for the hostels managers to place an emphasis on the dimensions of
service quality, especially tangibility and assurance, and also improve the communication
skills of staff with the purpose to improve the level of empathy with customers.
This research has been developed in a specific hostel in Dublin, therefore, the
findings has to be used carefully in attempting to avoid generalizations into the hostel
industry. This limitation has to be considered in further research focusing expand this
research for the whole hostel industry.
In the end, hostels managers have to be aware that among the various dimensions
of service quality, tangibility and assurance was especially significant in predict the
customer satisfaction. Improving the level of service offered is the key factor to customer
satisfaction.
This research is the first systematic study that analyse the impact of service quality
on customer satisfaction in Ireland and should be used as a model for other players in this
industry.
Key Words: Customer Satisfaction, Service Quality, Service Quality Dimensions,

SERVPERF, Hostel.
I
Table of Contents
1 Introduction .................................................................................................................... 1
1.1 Introductory Background ......................................................................................... 1
1.2 Reasons for Explore this Area ................................................................................ 2
1.3 Research Questions ............................................................................................... 3
1.4 Objective of the Research ....................................................................................... 3
1.5 Structure of the Research ....................................................................................... 3
2 Literature Review ........................................................................................................... 4
2.1 Hostels Context ...................................................................................................... 4
2.2 Service Quality........................................................................................................ 5
2.2.1 SERVQUAL ..................................................................................................... 7
2.2.2 SERVPERF ..................................................................................................... 9
2.2.3 Evaluation of SERVQUAL and SERVPERF Model .......................................... 9
2.3 Customer Satisfaction ........................................................................................... 10
2.4 Service Quality and Customer Satisfaction ........................................................... 11
2.4.1 Service Quality and Customer Satisfaction in the Hospitality Industry ............ 13
3 Methodology ................................................................................................................ 15
3.1 Conceptual Framework ......................................................................................... 15
3.2 Hypothesis Formulation ........................................................................................ 15
3.3 Data Instrument .................................................................................................... 17
3.4 Sampling Techniques ........................................................................................... 19
3.5 Data Analysis Procedure....................................................................................... 19
4 Data Analysis ............................................................................................................... 21
4.1 Reliability and Sample Characteristic .................................................................... 21
4.2 Analysis of Constructs .......................................................................................... 22
4.3 Findings ................................................................................................................ 23
4.4 Discussion ............................................................................................................ 25
5 Conclusions, Implications, Limitations and Suggestions............................................... 27
5.1 Conclusion ............................................................................................................ 27
5.2 Implication ............................................................................................................ 28
5.3 Limitation and Further Researches ....................................................................... 29
6 References .................................................................................................................. 30
7 Appendix ...................................................................................................................... 41
7.1 Data Instrument Survey ..................................................................................... 41
7.2 Ethical Guidelines and Procedures for Research involving Human Participants .... 43
II
Table of Figures
Figure 1Service Quality and Customer Satisfaction ............................................................ 12

Figure 2 Conceptual Framework - Service Quality and Customer Satisfaction. ................... 17
Figure 3 Normality of the Constructs - Outliers .................................................................... 24
Table of Tables
Table 1 SERVQUAL Model ................................................................................................... 8

Table 2 Data Instrument - Structure .................................................................................... 18
Table 3 Reliability Analysis of Constructs ............................................................................ 21
Table 4 Sample Characteristic ............................................................................................ 22
Table 5 Descriptive Statistics - Constructs .......................................................................... 23
Table 6 Multiple Linear Regression ..................................................................................... 25
III
1 Introduction
The intention of this chapter is to identify research area and to state the research
questions.Thereafter the chapter starts with an introduction about the importance of
measurement of service quality and customer satisfaction in business and the main reason
for explore this area; following by the research question and the objectives of this research.
1.1 Introductory Background
Tourism is an important driver of economic activity for Ireland. The tourism and
hospitality industry are responsible to generate approximately 180 thousands job positions
and produce around 5 billion a year in revenue from home and abroad, approximately 3%
of GDP(CSO, 2012).
The concept of quality is difficulty to be define given the intangible nature of the the
service offered and in tourism sector the quality is the main diffferentiation factor in the
competite environment(Kandampully, 2000).
A number of researchers have attempted to apply related theories and methods in

the hospitality industry based in service quality and customer satisfaction (Oh, 1999) and
considering this industry as a competitive environment, there is a need for companies to plan
strategies and objectives that will enable them to create differentiation among competitors in
the industry.
The importance of measurement ofservice quality offered by companies has been

recognized as one of the most important area of study for professionals of marketing with the
purpose to understand the service quality performance from the customer perspective(Al
Khattab & Aldehayyat, 2011).
Customers are the most important element for any business and keep them satisfied
is the result of fulfil and delight their expectations and exceed them(Al Khattab & Aldehayyat,
2011) and delivering service quality to customers is a core factors for success, and it need
to be continuously evaluated focusing improve the current situation if necessary (Mohd, et
al., 2013).
One approach considered relevant to achieve differentiation between competitors is

the provision of service quality, which subsequently result in customer satisfaction
(Parasuraman, et al., 1988) and Bolton & Drew (1991) identify the causal relationship
between service quality and satisfaction, being a precedent where Cronin & Taylor (1992)
underline that the quality of service leads to customer satisfaction.
1
The present research was developed in a Dublin Hostel through the guest focusing to
identity the customers perceptions face the service quality and customer satisfaction. All the
information collected in this research will be presented keeping anonymity of the hostels
name with the purpose to preserve the company.
Thus, the service quality and customer satisfaction has been considered very
important to help to improve the overall performance of business (Magi & Julander, 1996),
especially, for tourism industries.
1.2 Reasons for Explore this Area
The interest in studying the relationship between service quality and customer
satisfaction is explained by the fact that service quality has been proven to be the main
determinant of customer satisfaction when it comes to service sectors (Agbor, 2011).
In the literature about service quality and customer satisfaction exist many empirical
research in different services industries, including tourism industry, presenting this
relationship and which dimensions of service quality has direct impact on customer
satisfaction. Over the years, this topic has been considered relevant for professional and
companies and little research has been conducted about the relationship between service
quality based in customers perceptions of performance and customer satisfaction related
with hotels, but not research focusing hostel, it indicates that there is a relevant space to be
filled with this research.
Strong competition in the service industry especially in the hospitality industry leads
the competitors to direct efforts to reach customer satisfaction based in the quality of service
offered and this quality is related to the level of perception of service offered by customer
(Bitner & Hubbert, 1994). Apart from the service quality, there are other factors, such as,
price, can determine customer satisfaction (Wilson, et al., 2012).
Customer satisfaction can result in a positive word of mouth based in a customer

experience(Appiah-Adu, 1999), decrease price sensitivity (Reichheld & Sasser, 1990) and,
finally, leading to better business performance (Ryals, 2003) and some research arguments
that it is more expensive to win new customers than to keep existing ones (Hormazi & Giles,
2004) based in replacement costs, including advertising, promotion and sales
expenses(Athanassopoulos, et al., 2001).
From the literature has been reviewed, the customer can be considered the most
unpredictable stakeholder in the business environment, responsible to keep the business in
operation (Agbor, 2011) and based in this problem there is a crucial need to research this
2
area with the intention to identify the relationship with service quality and customer
satisfaction.
1.3 Research Questions
In order to discuss the impact of service quality on customer satisfaction, the

research questions are as follows:
Which dimensions of service quality have impact on customer satisfaction in a

Dublin Hostel?
In answering the above questions, it is expected to identify which dimensions of

service quality, involving, tangibility, reliability, responsiveness, assurance and empathy,
present relationship with customer satisfaction, whereby will be able to identify which those
dimensions can predict the customer satisfaction.
1.4 Objective of the Research
The objective of this research is identify is there is relationship between service

quality and customer satisfaction, based on the five dimensions of service quality.
The result of this research will provide to Hostels owners access to a relevant
information about customers perception faced the services offered and further give them the
possibility to improve service delivery and design new alternatives to customers. Thus, the
results of this research will be useful for others business in the service industry and also for
academics faced the originality of this research and lack of information about the relationship
between service quality and customer satisfaction in hostel industry.
1.5 Structure of the Research
The structure of this research is comprised by five chapters. The first chapter
presented the introduction, following by second chapter - Literature Review, where will be
presented the existing literature and Conceptual framework based on service quality and
customer satisfaction. The chapter three will be assigned for methodology where this
research is design and research methods will be presented; and the chapter four is comprise
by data analysis where will be explained the findings of this research and respectively
validity of research questions. The chapter five will present the conclusions of this research,
and also, implication, limitation, and suggestions for future research.
3
2 Literature Review
The chapter two has intention to present the relevant literature to this research and
the respective conceptual framework that will support this research. This chapter begins with
an exploration about the hostel context, following by a review of concept about service
quality, customer satisfaction and the relationship between those constructs, and presents
the conceptual framework.
2.1 Hostels Context
The concept of hostel is related to budget-oriented, dormitories - shared-room and it

is designed for individual travellers, also known as backpackers, or groups for short-term
stays (Cohen, 2004)and provides common areas, including living room, lounge, shower,
kitchen and others facilities.
The type of customer uses hostel services is totally different them hotel or B&B and
they have others needs and priorities. Pearce (2009)identify that hostel guest are on the age
group under 40 years old, with flexibility in the itineraries, showing a willingness to be
involved in social and participatory holiday activities.
Initially, the main reason for travellers chooseshostels were only price and it price
had to be lower when compared to hotel or bed & breakfast, but this scenario has been
changed over the years. Rodrguez (2011) identify as a factors that encourage the travelers
to stay in hostel are related with commom areas and less formalility,it means, travelers are
looking for places that can motivate them to meet other people and share information and
experiences, and it spaces including living room, shared-room, bar, kitchen and others
commom area. Thus, some of travelers chose to stay in hostels not only because of price
concern but also they classified hostel as a more social way of travelling and being able to
meet people around the world with different experiences (Godfrey, 2011).
Pearce(2009) identify that hostel guest are more exigent over the years and the
factor price concern associated with the concept hostel has to cover more than only a space
to stay overnight. Guest highlighted that hostels has to improve the level of cleanliness and
quality standards, more security, and better treatment with guest and more useful
information.
The tourism industry is one of the most dynamic industries and over the years the
type of guest in hostels has changed. The concept budget-oriented in the beggiing was
associeted to guest with low budget looking for a low cost accommodation and now this
scenario was been uptade. The new profile of guest in hostels around the world has been
4
moved by technology and with more power purchase but the reason to stay in hostels are
still associeted to social environment (Vaals, 2013).
Over the years, the tourism industry has been marked by constant changes and
competitiveness and companies in this industry has acted according by the customer needs
and trends, it means, tourism companies has focused on a short-term strategies with the
purpose to adapt to customers needs (ANVR, 2012) cited in (Vaals, 2013). The guest in
hostels starts to prioritize other factors as security, cleanliness, better treatment by staff and
more usefull information not only for price as common in the past.
The number of hostel in Ireland has widely increased over the years, reaching 161
units in whole country, 30 units in Dublin become this industry very competitive and
aproximately 16.000 bed in total available in hostel industry in Ireland.In order to meet the
customers needs the companies in this industries has been forced to elevate the quality
standards with the purpose to reach the customer satisfacton.
2.2 Service Quality
In the literature, the perceived service quality has been presented in different
waysdoes not have a uniform definition in the literature, which allows you to check numerous
instruments to measure the quality of services, all supported by different conceptual
definitions(Medeiros, 2009), it possible to highlight as reference the Nordic model(Grnroos,
1994), the American school, SERVQUAL (Parasuraman, et al., 1988)and
SERVPERF(Cronin & Taylor, 1992).
Parasuraman, et al. (1988) identified the concept of perceived service quality as the
overall judgment of customer about a product or service based in it superiority or excellence,
and also, as the evaluation of performance by customers and this evaluation can impact
positively or negatively in future behaviour by them (Anderson, et al., 1994).
In the tourism industry the delivery of quality in services is an element of strategic

differentiation and this fact is relate to the evolution of consumer habits and the rise of
competitiveness among tourism companies (Grande, et al., 2002). Lewis & Booms (1983)
classified the quality as the measure of how the service offered matches with customer
expectations and delivery this quality means reach the customer expectations on a
consistent basis, it means, positive experience.
The first research measured the service quality was proposing by Parasuraman, et
al. (1985) with the purpose to define and evaluate the quality, and based in this were
developed 34 itens splited in ten dimensions: reliability, responsiveness, competence,
5
access, courtesy, communication, credibility, security, understanding of customer and
tangilibility. Three years later the same authors, Parasuraman, et al. (1988) grouped those
10 dimensions in 5 dimensions and created the model knowing as SERVQUAL comprises
by tangibility, reliability, responsiveness, assurance and empathy.
The service quality is considered essencial for the success and survival in a
competitive environment (Dawkins & Reichheld, 1990) and this influence the consumer
behaviour in a decision making process, and also the level of relationship between customer
and company and can impact customers loyalty (Henning-Thurau, et al., 2001).
Major reasearch contributions identified the service quality as a result of comparasion

by customers between expectations and perception of service offered (Grnroos, 1994);
Parasuraman, et al. (1988); Caruana (2002).
The service qualityis related to the level of perception of service offered by customer
(Ghobadian, 1994) and this level should be measured by the perception of performance
(Cronin & Taylor, 1992)instead by the difference between perception of expectation and
performance based in the model SERVQUAL proposed by Parasuraman, et al. (1988).
The pioneers to justify the measurement of service quality based in perfomance,

excluding the expectations of customers, as the authors considering that is more important
customers feedback about service or product, instead to identify them expectations(Cronin
& Taylor, 1992).
The quality of service has been recognized as being the key strategic value for
organizations(Mohd, et al., 2013) and can impact in satisfaction and retention of customers,
opportunity for cross selling, reduction of cost and increase profit margin and business
performance, and also, development of customer relationship - life time value(Adil, 2012).
The hospitality industry has been facing increased numbers of competitor and a
pressure environment, as a consequence of the combined effect of the current wordwide
economic sittuation, technological advancement and globalization. The competitive
enviromment in a hospitality industry has modified the way the companies delivery the
quality of service to customers and has made them adopting new approaches to maximaze
the customer satisfation based in a service quality(Murasiranwa, et al., 2010).
The players in the hospitality industry, precisely the hotel/hostel has been directed
the efforts to change the way they act in this industry, focusing in undestard customers
needs and set out strategies to meet or exceed these needs. The way they have found to
achieve this strategy is to raise the attention to service quality from the customers
perspective(Al Khattab & Aldehayyat, 2011).
6
To sum up, the service quality has been a relevant object of research for major
authors in different areas, and over the years many measurement models were developed
with the purpose to measure the service quality, highlighting the SERVQUAL based in gaps
between expectation and performance (Parasuraman, et al., 1988) and SERVPERF based
only on performance of service offered(Cronin & Taylor, 1992).
2.2.1 SERVQUAL
Parasuraman, et al. (1988) introduced the model of measurement service quality with
22 item scale, called SERVQUAL, and this model has been widely adopted across
industries(Oh, 1999). The SERVQUAL instrument was based on the satisfaction model
proposed by Oliver (1980) and approaches the customer satisfaction as a result of
expectation and performance of service offered.
The SERVQUAL mode is comprises by 44 items (Table 1)divided in five dimensions

and 22 of those items have the purpose to measure the customer expectations and the other
22 items to measure the performance and this measurement is based on the gaps between
expectations and performance(Parasuraman, et al., 1988). The model SERVQUAL is
comprises by five dimensions, including tangibility, reliability, responsiveness, assurance
and empathy.
The dimensions of the model SERVQUAL have the objective to identify the customer
perceptions based expectations and performance of service offered(Parasuraman, et al.,
1988), including to evaluate the appearance of physical facilities, equipment, personnel and
communication materials (tangibility); theability to perform the promised service dependably
and accurately (reliability); the willingness to help customers and to provide prompt service
(responsiveness);the knowledge and courtesy of employees and their ability to convey trust
and confidence (assurance) and empathy - the provision of caring, individualized attention to
customers(Soteriou & Zenios, 1997).
7
Table 1SERVQUAL Model
Dimensions Expectations Performance

Materials associated with the service (such as
Excellent banking companies will have modern
pamphlets or statements) are visually appealing at
looking equipment
XYZ bank
The physical facilities at excellent banks will be When XYZ bank promises to do something by a
visually appealing certain time, it does so
Tangibility
Employees at excellent banks will be neat When you have a problem, XYZ bank shows a
appearing sincere interest in solving it
pamphlets or statements) will be visually XYZ bank performs the service right the first time
appealing at an excellent bank
When excellent banks promise to do something XYZ bank provides its service at the time it
by a certain time, they do promises to do so
When a customer has a problem, excellent banks
XYZ bank insists on error free records
will show a sincere interest in solving it
Excellent banks will perform the service right the Employees in XYZ bank tell you exactly when
Reliability
first time services will be performed
Excellent banks will provide the service at the
Employees in XYZ bank give you prompt service
time they promise to do so
Employees in XYZ bank are always willing to help
Excellent banks will insist on error free records
you
Employees of excellent banks will tell customers Employees in XYZ bank are never too busy to
exactly when services will be performed respond to your request
Employees of excellent banks will give prompt The behaviour of employees in XYZ bank instils
service to customers confidence in you
Responsiveness
Employees of excellent banks will always be
You feel safe in your transactions with XYZ bank
willing to help customers
Employees of excellent banks will never be too Employees in XYZ bank area consistently
busy to respond to customers requests courteous with you
The behaviour of employees in excellent banks Employees in XYZ bank have the knowledge to
will instil confidence in customers answer your questions
Customers of excellent banks will feel safe in
XYZ bank gives you individual attention
transactions
Assurance
Employees of excellent banks will be consistently XYZ bank has operating hours convenient to all its
courteous with customers customers
Employees of excellent banks will have the XYZ bank has employees who give you personal
knowledge to answer customers questions attention
Excellent banks will give customers individual
XYZ bank has your best interest at heart
attention
Excellent banks will have operating hours The employees of XYZ bank understand your
convenient to all their customers specific needs
Excellent banks will have employees who give
Empathy pamphlets or statements) are visually appealing at
customers personal attention
XYZ bank
Excellent banks will have their customers best When XYZ bank promises to do something by a
interests at heart certain time, it does so
The employees of excellent banks will When you have a problem, XYZ bank shows a
understand the specific needs of their customers sincere interest in solving it
Source: Parasuraman, et al. (1988)
The SERVQUAL model has been widely adopted by different industries, including
bank(Cronin & Taylor, 1992), hospital(Lim & Tang, 2000), retail(Gagliano & Hathcote, 1994),
educational institution(Rigotti & Pitt, 1992), rental car (Bouman & Van der Wiele, 1992)and
other professionals.
8
2.2.2 SERVPERF
Cronin & Taylor (1992) in their research contradicting the conceptual framework
proposed by Parasuraman et al. (1985, 1988) maintained the initial conceptualization and
measurement of service quality, and proposed the model to measure the service quality
based on merely performance, called SERVPERF.The authors argued that the model
SERVPERF are an enhanced way to measure the service quality (Mohd, et al., 2013) and
based on empirical research across diferent industries, including pest control, fast food, dry
cleaning and bank, they provided evidences that support the distinction over SERVQUAL
model based on perfomance only, maintained the same itens scale proposed by
Parasuraman et al. (1985, 1988).
The distinctionbetween those twoconcepts expectation and performanceis very

important, asservice providers is more important to havesatisfied customerswiththeir
performance rather than provideserviceswith high level ofperceived quality based on
expectations(Cronin & Taylor, 1992).The authors of SERVPERF model considered that the
perceived service quality is the antecedent to customer satisfaction, and also has meaningful
impact on purchase intention(Cronin & Taylor, 1992).
Cronin e Taylor (1992) emphasized that the service quality is conceptualized by

customers attitude related with the dimensions of service quality, rather than by the gap
between expectation and performance as suggested by satisfaction model (Oliver, 1980), in
other words, the base of the SERVPERF model is measure the service quality in a
performance approach (Huang, 2011).
Many researches were published using the SERVPERF model to measure the
service quality e has been applied in different sectors of economy, including retail (Mehta, et
al., 2000), bank(Baumann, et al., 2007), airlines(Cunningham, et al., 2002), higher
education(Abdullah, 2006), dental clinics(Paul, 2003), public transport (Perez, et al.,
2007),hospitality (Nadiri & Hussain, 2005)and tourism(Hudson, et al., 2004).
2.2.3 Evaluation of SERVQUAL and SERVPERF Model
The service quality models SERVQUAL and SERVPERFhas been applied in several
industries and been object of research for different areas. Cronin & Taylor (1992) concluded
that SERVPERF is more sensitive than theSERVQUALtomeasure variations inperceived
service quality. The authors identifiedservice qualityas a directantecedent ofsatisfaction,
where ithassignificant impact onrepurchase intention and consider the customer predilection
9
is more important to a long-term service than gaps between expectations and
performance(Al Khattab & Aldehayyat, 2011).
In the literaturethere are otherstudies thatconfirm the findingsobtained byCronin &

Taylor (1992)about thesuperiority ofSERVPERFcomparedwith theSERVQUALmodel, in
assessingthe quality ofservices in different areas, including internalservices(Salomi et al.,
2005; Mohd et al., 2013). According by Cronin & Taylor (1992) the SERVPERF model
produced more steady resultsthan the approachofdisconfirmationofsatisfactionproposed
byOliver(1980), the basisof theSERVQUALmodel.
Many researchers have criticized the SERVQUAL model based on identified issue
about the difference score approach - expectations and performance, because them can
causes poor reliability (Brown, et al., 1993)and problems of variance restriction associated
with thecomponent scores, it means, the restriction is related to the problem to harm the
predictive validity of the model(Peter, et al., 1993).
Another relevant evaluation about the SERVQUAL model was presented by Teas
(1993) cited in Oh (1999) where the scale to measure expectations can induce different
types of expectations and the respondents of research are not able to identify difference
among the score to measure expectations.
The concerns in measure expectations have been a relevant topic for debate among
researches in different areas (Oh, 1999) and the SERVPERF model has not been an aim to
the same criticisms. Laroche et al. (2004) provided empirical evidences that the SERVQUAL
model must not be used in measurement of service quality in every type of industry, it
means, different industries require thorough analysis to identify the suitable model to
measure service quality.
2.3 Customer Satisfaction
The definition of satisfaction concept appeared in a classic research by Cardozo

(1965) as a positive evaluation post-purchase and Kotler & Keller (2012) classified as a
feeling of pleasure or disappointment resulting fromcomparing theexpected product or
service in relation tothe customersperformanceexpectations. Cronin & Taylor,
1992;Zeithaml, et al. (1996) identified the concept of satisfaction as a relation to customers
overall evaluation based in consumption experience of product or service.
Howard and Sheth (1969)define the concept of satisfaction as the reward in buying a
product or service compared to the sacrifices made, but should be seen as the assessment
made from an experience that exceeds initial expectations (Hunt,
10
1977).Solomon(1999)consider that satisfaction can be defined as the judgment formed
during the use or consumption of a product or service, therefore a reaction or feeling about
an expectation, result of performance evaluation of a product or service(Cronin & Taylor,
1992), instead by the expectation (Parasuraman, et al., 1988) and also can be define as a
business strategy with purpose to create value for customers, identify and satisfy or exceed
their needs(Dominici & Guzzo, 2010).
Customer satisfaction is the level of customer felt state resulting from comparing a
perceived performance of service or product in relation to customers expectations(Bala,
2013), it means, if the perceived performance is less than expected, can result in a
dissatisfaction by customer, and if the perceived performance exceeds expectations, can
result in satisfaction by customer (Lin, 2003) cited in (Sakhaei, et al., 2014).
In the hospitality industrymany studies has been developed to identify the attributes
that tourist considered relevant regarding customer satisfaction (Agbor, 2011). Based in
those studies was possible identify as a determinates of customer satisfaction an extensive
list of factors, including security, value for money, cleanliness, courtesy and friendless of
staff (Atkinson, 1988; Knutson, 1988; Barsky and Labagh, 1992; Akan, 1995), convenience
of location, prompt service, safety, comfort (Knutson, 1988), employee attitude, rooms
quality (Barsky and Labagh, 1992; Choi and Chu, 2001), behavioural of employees, staff
quality and timeless (Akan, 1995; Choi and Chu, 2001)
Many researchers approach the concept of customer satisfaction as a customers

feeling of pleasure or disappointment, and it feeling is related with the difference of
expectations and performance of product or service experience (Brady & Robertson, 2001)
cited in (Fen & Lian, 2007).
2.4 Service Quality and Customer Satisfaction
The relationship between service quality and customer satisfaction has received
considerable attention in the marketing literature (Brady & Cronin, 2001;2002; Cronin
&Taylor, 1992; Meuter, et al., 2000; Oliva, et al., 1992; Al-Hawary, et al., 2011; Kordnaeij, et
al., 2013).
The concepts service quality and customer satisfaction appears in the literature as a
separated constructs(Bitner, 1994; Sprenget al., 1996), sharing a close relationship (Cronin
& Taylor, 1992), being necessary to identify the differences between them. The quality
perceptions do not require experience with the service and its dimensions are specific while
11
the concept satisfaction judgements require experience with the service or provider and also
can result from any dimension, not even related to quality.
From the literature that has been reviewed, customer satisfaction is an important
aspect for services industries and has presented intensive relationship with service
quality(Cronin & Taylor, 1992; Al-Hawary, et al., 2011) and it relationship have been
recognized as a key factor of success to survive in a competitive environment (Bolton &
Drew, 1991; Cronin & Taylor, 1992; Fen & Lian, 2007).
The measurement of service quality has been identified as a crucial factor

responsible for influence customer satisfaction or dissatisfaction,being considered the most
critical determinant of satisfaction(Bolton & Drew, 1991;Tripathi, 2013;Joukes, et al., 2013),
and had been pointed with strong positive correlation between those constructs, and also
can result in a positive word of mouth and loyalty intention(Vanpariya & Ganguly, 2010), it
means, the service quality and customer satisfaction has direct positive effect on customer
retention intentions and has being recognized as strong predictor for retention
(Gopalakrishnan, et al., 2011).
According by the relationship between service quality and customer satisfaction,

researchers have found empirical evidences that customer satisfaction is a result of service
quality, being an antecedent of that(Oliver, 1993; Anderson & Sullivan, 1993). Definitely, the
service quality and customer satisfaction have present relationship in many empirical studies
and its constructs are somewhat correlated, in terms of cause and effect(Iacobucci &
Ostrom, 1995).
Figure 1Service Quality and Customer Satisfaction
12
The Figure 1 presents the relationship between service quality and customer
satisfaction. The reflection of service quality is based on customers perception about the
dimensions of service quality, empathy, reliability, assurance, responsiveness and tangibility,
and as cause-effect, the customer satisfaction appears as a result of customers perception
faced service quality (Zeithaml, et al., 1996; Zeithaml et al. 2006;Ngan, 2013).
In a competitive environment that most industries have facing, the key factor of
success is deliver high quality of service focusing on satisfying customers (Shemwell, et al.,
1998) and based in this association, these topics has been recognized as a relevant area of
research for several industries and support for decision making (Bolton & Drew, 1991;
Cronin & Taylor, 1992).
In the literature is possible to identify many empirical studies that investigated the
relationships among the dimensions of service quality (tangibility, reliability, responsiveness,
assurance and empathy) and customer satisfaction in a diverse industries and has identified
the strong positive correlation between them (Andaleeb& Conway, 2006; Al-Hawary, et al.,
2011; Shanka, 2012; Suki&Suki, 2013).
2.4.1 Service Quality and Customer Satisfaction in theHospitality Industry
Over the years the hotel industry has faced a considerable increase in demand, and
the level of exigency by the customers has reached high standard, consequently has
imposed the competition among players in this industry, and also highlight that this industry
is influenced by quality of service provided by the hotels (Dominici & Guzzo, 2010).
In a highly competitive environment in the hospitality industry, meant that companies

in this industry act in a different way than usual, it means, they have started to taking efforts
on understanding customer needs based on relationship between service quality and
customer satisfaction (Reichheld&Sasser, 1990).
In the hospitality industry provide high standard of quality and improve customer
satisfaction has been recognized as a crucial factors responsible to push up the
performances of players in this industry and also can improve their profitability(Oh & Parks,
1997; Oppermann, 1998; Dominici & Guzzo, 2010).
Currently, hotel managers has facing the challenge in the hotel industry to provide
and maintain the customer satisfaction. This management approach based in provide
product and service with high standard of quality focusing in customer satisfaction can result
in positive brand image, loyalty, reduce the price perception by customers and increase
profitability(Dominici & Guzzo, 2010).
13
The customers demand for service quality in the hospitality industry has been
increasingly recognized as a key factor to professionals in the battle of competitive
differentiation and customer retention and providing the high level of service to those
customers is a starting point to customer satisfaction(Parasuraman et al., 1988;Lam &
Zhang, 1999).
In the tourism industry the quality is an opportunity for players to handle the elements
of service to reach the customer satisfaction, it means, the service quality is a crucial space
to filled by companies, based on the perceived performance by customers (Saleem & Raja,
2014). Thus, the service quality is related to affective responses, expressive reactions and
also to sensitivity to the attributes of performed service, leading to customer satisfaction
(Otto & Ritchie, 1995).
Many researchers have identified the relation of service quality and customer
satisfaction in the hospitality industry (Gilbert, et al., 2004; Qin &Prybutok, 2008;
Suneeta&Koranne, 2014) and the strong positive correlation between those constructs is a
very important for those companies which have an objective to develop a good marketing
strategies, and also provide competitive advantage and build loyal customers base (Cronin &
Taylor, 1992; Aaker & Jacobson, 1994; Jain & Gupta, 2004; Shafiq, et al., 2013; Saleem &
Raja, 2014).
14
3 Methodology
The objective of this chapter is to explain the methods used in this research. Thus,
this chapter will present the proposed hypothesis based on literature to support them and
respective conceptual framework. The chapter also presents the research approaches,
questionnaire structure, sampling techniques, data collection method, and data analysis
procedures.
3.1 Conceptual Framework
The present conceptual framework was developed which objective to identify the
capability to predict the customer satisfaction based on the dimensions of service quality.
The conceptual framework has been supported by empirical evidences that service quality is
a predictive of customer satisfaction (Oliver, 1993; Anderson & Sullivan, 1993; Iacobucci &
Ostrom, 1995; Andaleeb& Conway, 2006; Al-Hawary, et al., 2011; Shanka, 2012; Suki&Suki,
2013).
The construct service quality in this conceptual framework is comprised by five

dimension, including tangibility, reliability, responsiveness, assurance and empathy, based
on the SERVPERF model (Cronin & Taylor, 1992) that considered service quality is a result
of customers perceptions about performance of service offered, instead by the function of
differences between expectation and performance proposed by SERVQUAL
model(Parasuraman, et al., 1988), and the construct customer satisfactionhas been
conceptualized in this research as customers feeling based on the most recent services
experienced, it means, this feeling is a result of affective evaluation from the customers
perspective(Zeithaml, et al., 1996).
Thus, the present conceptual framework (Figure 2) in this research has been
developed on basis of customers perception of service quality based on performance
SERVPERF model (Cronin & Taylor, 1992) and the customer satisfaction (Zeithaml, et al.,
1996) focusing in identify the relationship between those constructs in the Dublin Hostel.
3.2 Hypothesis Formulation
Providing high standard of service quality can result in high level of customer
satisfaction (Suki & Suki, 2013) and based in the widely common service quality
measurement model SERVPERF (Cronin & Taylor, 1992)and it five dimensions, including
tangibility, reliability, responsiveness, assurance,and empathy, has been conceptualized the
15
hypothesis of this research which aim to identify the relationship of those five dimensions
with customer satisfaction construct (Zeithaml, et al., 1996).
The dimension tangibility of service quality model refers to appearance of physical

facilities(Parasuraman, et al., 1988), and in the hostel context, it can include reception desk,
cleanliness of premises in general, promotion documents and it factors are correlated to
customer satisfaction (Lai, 2004; Kumar et al., 2010). Thus, the following hypotheses are
proposed:
H1: There is a significant relationship between the dimension tangibility of service

quality and customer satisfaction.
The reliability represents the customers perceptions based on the promised service
dependably and accurately(Parasuraman, et al., 1988) and can be considered as reputation
that can be the most reliable indicator of service quality which can be relate to customers
previous experiences (Nguyen & Leblanc, 2001) and also has been related to customer
satisfaction (Arasli et al., 2005; Kheng et al., 2010). Therefore, the following hypotheses are
proposed:
H2: There is a significant relationship between the dimension reliability of service

The dimension responsiveness refers to the willingness to help customers and to

provide prompt service to meet the customersneeds(Parasuraman, et al., 1988) and it
dimension is relate to the instant feedback and easy access (Polatoglu & Ekin, 2001), and
also is likely to have an important and positive effect on customer satisfaction (Glaveli et al.,
2006; Mengi, 2009; Kheng et al., 2010). Thus, the following hypotheses are proposed:
H3: There is a significant relationship between the dimension responsiveness of

service quality and customer satisfaction.
The dimension assurance represents the knowledge and courtesy of employees and
their ability to convey trust and confidence(Parasuraman, et al., 1988)being an important
factor to the customers experiencing the service(Mengi, 2009) and can affects customer
satisfaction (Kheng et al., 2010). Therefore, this study hypothesizes that:
H4: There is a significant relationship between the dimension assurance of service

16
The empathy is identified as the caring, individualized attention the firm provides for
itscustomers(Parasuraman et al., 1988;Soteriou & Zenios, 1997)and it attention is very
important can result in customer satisfaction(Kumar et al., 2010;Suki & Suki, 2013). Thus,
the the following hypotheses are proposed:
H5: There is a significant relationship between the dimension empathy of service

Figure 2ConceptualFramework -Service Quality and Customer Satisfaction.
Supporting by the five above proposed hypothesis was designed the conceptual
framework (Figure 2) for this research focusing to identify the relationship between service
quality dimensions based on SERVPERF mode and customer satisfaction (Zeithaml et al.,
1996; Zeithaml et al. 2006;Ngan, 2013).
3.3 Data Instrument
The method used to analyse the relationship between service quality and customer
satisfaction in a Dublin Hostel is quantitative based in the purpose to analyse the research
questions and provide answer to them. The main advantages of quantitative methods are
related to flexibility and versatility and also to the fact that will provide to the researcher deep
understanding of the topic or research problem(Malhotra, et al., 2012).
17
This research was conducted using the online survey as a data instrument. The data
was collected through self-administered methods using the direct email including the short
explanation about the survey and respective link to them to the previous guest of the
hostel.The self-administered methods is related with questionnaire designed to be
completed by a respondent without intervention of the researchers and presents as
advantages the low cost associated, quicker distribution, local and international cost are the
same and also can provide anonymity to respondent (Wolf, 2008).
The questionnaire is comprise by three divisions consisting of 32 questions (
Table 2), including the first part with 22 items based in service quality and it
dimensions tangibility, reliability, responsiveness, assurance and empathy(Cronin & Taylor,
1992), following by customer satisfaction with 4 items(Zeithaml, et al., 1996) and the last
division with 4 items based on the profile question (gender, age group, nationality and length
of stay).
Table 2Data Instrument - Structure
Divisions Items Source

Tangibility
Reliability
Service Quality Responsiveness Adapted from Cronin & Taylor (1992)
Assurance
Empathy
Customer Satisfaction Customer Satisfaction Adapted from Zeithaml et al. (1996)
Gender
Age Group
Profile
Nationality
Length of Stay
The data instrument was designed based on the five dimensions of service quality is
comprises by 4 items for dimension tangibility, 5 items for dimension reliability, 4 items for
responsiveness, 4 items for assurance and 5 items for empathy, totalling 22 items of
SERVPERF model (Cronin & Taylor, 1992). Respondents were asked to indicate the level of
agreement for each item of the data instrument based on five-point Likert scale ranging
from1 to 5 (1= Strongly Disagree; 2= Disagree; 3= Neutral; 4= Agree; 5= Strongly Agree).
18
3.4 Sampling Techniques
The research was conducted at one hostel located in Dublin, capital of Ireland, with
capacity for 130 guestsdivided within 12 dormitories. Since the opening day the hostel has
registered a total of 5126 reservations comprise by 58% from online booking providers
(Hostel World and Hostel Bookers) and 42% from reception desk.
The convenience sampling techniques was used to collect data based on quantitative
method and it technique involves the selection of the most accessible objects of research
(Marshall, 1996) and attempts to obtain a sample of convenient elements, which highlights
as advantages low cost to researcher, less consumption of time and efforts, and
convenience (Malhotra, 2013).
Considering the purpose of this exploratory research, the non-probabilistic sample

was designed based on entire guest of the hostel that has booked using online booking
providers, including Hostel World and Hostel Bookers, representing 58% of the total booking
registered in the hostel since 01/06/2012 until 01/03/2014. Based on 2974 online booking
registered, representing 58% of the total in the hostel in this period, was selected the guests
has booked in the hostel in the last 3 months (01/12/2013 until 01/03/2014) and it represent
41% of the total of online booking, it means 1212 online bookings registered since
01/06/2012.
The questionnaire was pre-tested in pilot test using a small convenience sample of
20 hostel guests with to purpose to identify any ambiguities and confusion on thefirst draft of
data instruments. The pilot test is a relevant technique to refine the data instrument avoiding
gaps and wastage of time, efforts and money in the research (Sampson , 2011).
Based on the hostels guest from online booking providers was sent by direct email
an invitation to the hostels guest answer the questionnaire online including a short
explanation about the purpose of this research and respective link to the data instrument
(http://freeonlinesurveys.com/s.asp?sid=gcewht9nmrqgngl420932). The total of
1212requests was sent to the guest to answer the data instrument and the number of
completed questionnaires returned was 324, representing approximately 27% of the
response rate.
3.5 Data Analysis Procedure
The quantitative data analysis methods applied in this research provided a possibility
to explore, present, describe and also identity the relationship between the construct service
19
quality based on the five dimensions of SERVPERF model and customer satisfaction from
the data already collected (Saunders, et al., 2009) and the entire statistics analysis was
designed using the software SPSS and R Statistics.
In order to analyse the data collect in this research, was applied descriptive and
inferential statistics. The descriptive analysis was used to summarize the data in term of
frequencies for nominal and ordinal variables of profile (gender, age group, nationality)
focusingto clarify characteristics of the variables providing better understand and
presentation of results (McQueen & Knussen, 2004) and also used univariate analysis of
numerical items of dimensions of SERVPERF model and customer satisfaction with the
purpose to measure central tendency and dispersion, including mean, mode, standard
deviation, minimum and maximum.
Initially the inferential statistics was applied in this research with the purpose to
validate the scale based on Cronbachs alpha focusing in measure the internal consistency
and evaluate the reliability level of the scale. Further, the inferential statistics was also
applied with the objective tomake predictions based in multiple linear regressions and also
identify relationship between the constructs of this research, including service quality and
customer satisfaction.
The linear regression was applied with the aim of measure the level of relationship
between the constructs customer satisfaction as dependent indicator and the explanatory
variables including the five dimensions of service quality focusing in identify the prediction of
customer satisfaction based on the five dimensions of service quality and also test the
hypothesis of this research(Saunders, et al., 2009).
20
4 Data Analysis
The objective of this chapter is to present the results and analysis of this quantitative
research based in descriptive and inferential statistics. This chapter is comprises by four
part, including the validity and reliability, following by descriptive statistics using tables to
present the frequencies, central tendency and dispersion, and the hypothesis test based on
multiple linear regression. Thus, the chapter will be concluded with the discussion of findings
and the validation of hypothesis of this research.
4.1 Reliability and Sample Characteristic
In this research were conducted the reliability test using the Cronbachs alpha in
order to identify the consistency of the items in the data instrument. The use of the
Cronbachs alpha has become common practice in empirical research when multiple-item
measures are applied as data instrument (Tavakol & Dennick, 2011).
The reliability coefficient applied in this research allowed to identify the stability,
consistency and also enhance the accuracy of assessment of the data instrument used in
this research and it coefficient varies between 0 and 1(Tavakol & Dennick, 2011), where
Bryman & Bell (2011) considered acceptable internal reliability when greater than 0.80, and
others authors considered as excelent internal reliability when the Cronbachs alpha is
greater than 0.9, good between 0.8 and 0.9, acceptable between 0.7 and 0.8, questionable
between 0.6 and 0.7, and the others results lower than 0.5 can be explained by a low
number of items, poor inter-relatedness between itens or heterogeneousconstructs.
Analysing the five constructs of service quality, including tangibility, reliability,

responsiveness, assurance, empathy, and the customer satisfaction based on reliability test
show that all the constructs has presented excellent and good internal reliability (Table 3).
Table 3Reliability Analysis of Constructs
Constructs Number of Items Cronbach's Alpha

Tangibility 4 0.900
Reliability 5 0.884
Responsiveness 4 0.907
Assurance 4 0.908
Empathy 5 0.865
Satisfaction 4 0.855
21
As mentioned before, the sample of this research is comprise by 324 respondents
and based in a descriptive analysis was possible identify that the majority of the respondents
is male (52.8%), age group between 21 and 30 years old (65.7%), national from Europe
(44.4%) and South America (26.2%) and the length of stay are between 3 and 6 days
(65.14%). The results are depicted inTable 4.
Table 4Sample Characteristic
Variables Categories Absolute Frequency Relative Frequency
Male 171 52.8%

Gender
Female 153 47.2%
Between 18 and 21 years old 41 12.7%
Age Group Between 26 and 30 years old 104 32.1%

South America 85 26.2%
North America 38 11.7%
Australia 15 4.6%
Nationality
Asia 26 8.0%
Africa 16 4.9%
Europe 144 44.4%
Between 1 and 2 days 58 17.9%

Length of Stay Between 5 and 6 days 67 20.7%
More Than 8 days 9 2.8%
4.2 Analysis of Constructs
A structured data instrument was used in this research based in 26 questions divided
in 6 constructs, including tangibility, reliability, responsiveness, assurance, empathy
representing the service quality model and customer satisfaction, with the purpose to find out
the level of perception by users on the service offered.
Based on 324 respondents perceptions towards the service quality offered by the
hostel, the results of descriptive statistics showed that the most relevant constructs on this
research are tangibility with mean score 3.668, following by reliability with 3.512 and
22
responsiveness with 3.434 based on the perception of customers related with the service
offered and the perception of customer satisfaction presented considerable level.
The constructs assurance and empathy of service quality model presented lowest
mean score when compared with the other constructs, it means, the customers perceptions
of these constructs based on the service offered by the hostel is weak. The results are
depicted in Table 5.
Table 5Descriptive Statistics - Constructs
Constructs Mean Std. Deviation

Tangibility 3.668 0.738
Reliability 3.512 0.774
Responsiveness 3.434 0.843
Assurance 3.157 1.016
Empathy 3.075 0.846
Customer Satisfaction 3.583 0.750
4.3 Findings
In this research a multiple linear regression analysis was conducted with the purpose
to investigate the influence of service quality based on its five dimensions on customer
satisfaction. The multiple linear regression is a constructive statistical method used to
identify the correlation between a single dependent factor and several independent variables
(Seelbach, et al., 2011; Vesey, et al., 2011).
The multiple linear regression assumes that variables on the sample have normal
distributions, it means, is extremely important to check the normality of the variables with the
purpose to identify the existence of outliers. The non-normally distributed variables can
impact in distortion of the results on multiple linear regression. Other relevant aspect has to
be analysed is related to the reliability level of the variables used on the multiple linear
regression because can also distort the result andcan lead to erroneous findings (Osborne &
Waters, 2002).
23
The reliability level was verified on the above session providing excellent and good
level of reliability of the constructs used in this research, and the normality has been
checked, not presenting outliers. Thus, based on these verifications is possible identify
conditions for multiple linear regression (Figure 3).
Figure 3Normality of the Constructs - Outliers
Based on the multiple linear regression conductedin this research to evaluate the
relationship between the five dimensions of service quality and customer satisfaction was
possible to identify that the weighted combination of the predictor variables (tangibility,
reliability, responsiveness, assurance, empathy) explained approximately 76% of the
variance of customer satisfaction, based on the coefficient of determination (R2= 0.761).
The prediction model is statistically significant F(5, 318), at the 1% level (p < 0.01).
This indicates that the overall model was reasonable fit and there was a statistically
significant correlation between service quality dimensions and customer satisfaction.
The individual model variables revealed that the construct tangibility ( = 0.626, t =
2.601, at the level p < 0.01) and assurance ( = 0.133, t =3.607, p < 0.01) presented a
significant and positive relationship with customer satisfaction. Meanwhile the other
24
dimensions, including reliability, responsiveness and empathy not present a significant effect
on customer satisfaction.The results are depicted in Table 6.
Table 6Multiple Linear Regression
t
Constant 0.283 2.601**
Tangibility 0.626 14.047***
Reliability 0.035 0.502
Responsiveness 0.096 1.838
Assurance 0.133 3.607***
Empathy 0.043 0.976
2
R 0.761
F 202.231***
**, *** indicates significance at the 95%, and 99% level, respectively.
Based on the results from the multiple linear regression was possible to confirm that
the dimensions tangibility and assurance have significant relationship with customer
satisfaction, validating the hypothesis 1 and 4 developed for this research.
4.4 Discussion
The main issue addressed in this research is the relationship between the service
quality and customer satisfaction. The results of this research were presented based on
multiple linear regression using the five dimensions of service quality and the construct
customer satisfaction with the objective to validate the research questions.
The findings from multiple linear regression that the dimensions tangibility and
assurance of service quality has impact on customer satisfaction are substantiated by
Karunaratne&Jayawardena (2010) in the hospitality industry.
Cooper, et al. (2008) suggest that customer satisfaction in the hotel industry is the
fusion between the facilities and services, including accommodation, food and beverages,
transport, and the level of quality of these items are delivered has to be uniform and Chi &
Qu (2009) considered the components of accommodation one of the most critical factor of
customer satisfaction in the hotel industry.
25
The results identify that the dimension empathy presented the lower level of
perception face the other dimensions of service quality (Table 5). This observation suggests
that the hostel manager have to organize trainings for employees, focusing in improve the
communication skills, providing friendly style of communication with guests(Nadiri &
Hussain, 2005).
Based on the literature review was possible identify that customers in the hostel are
different than hotel. The customers in the hostel are looking for inexpensive accommodation,
temporary shelter as well as a place for a shower, it means, the level of exigencies is totally
different than hotel. Supporting by the findings in this research is possible to state that the
customer satisfaction for guest in the hostel is based on tangibility and assurance, it means,
the appearance of physical facilities, the knowledge and courtesy of employees and their
ability to convey trust and confidence(Parasuraman, et al., 1988) are the base of customer
satisfaction in the hostel industry.
In the hostel industry, service quality is crucial for hostels manager reach the
customer satisfaction and requires more attention and training with employees with the
purpose to deliver the high level of quality in the service offered in order to satisfy the guests.
26
5 Conclusions, Implications, Limitations and Suggestions
The aim of this chapter is verify the contributions of this research for the hospitality
industry, also check if the research questions were validated. Therefore the chapter begins
with aconclusion, then to the implication, followed by limitations, and also the suggestion for
futureresearch in the end of the chapter.
5.1 Conclusion
The tourism and hospitality industry are one of the most profitable industry in the
world and has been responsible to generate approximately 180 thousands job positions and
produce around 5 billion a year in revenue from home and abroad, approximately 3% of
GDP(CSO, 2012) in Ireland. These industries have been marked by the competitive
environment and its scenario requires that companies provide high level of service quality as
a differentiation between competitors with the purpose to satisfy the customers.
Over the years, a number of researchers have attempted to apply related theories
and methods in the hospitality industry based in service quality and customer satisfaction
(Oh, 1999)and the importance of measurement ofservice quality offered by companies has
been recognized as one of the most important area of study for professionals of marketing
with the purpose to understand the service quality performance from the customer
perspective(Al Khattab & Aldehayyat, 2011).
The main objective of this research was to identify the impact of the five dimensions
of service quality, including tangibility, reliability, responsiveness, assurance and empathy,
on customer satisfaction. The conceptual model proposed in this research states that service
quality have impact on customer satisfaction based on SERVPERF model.
The SERVPERF model has been considered a useful instrument to measure the
service quality in the hospitality industry and highlight the areas has to be improved based
on the five dimensions of service quality.
According by the finding of this research is possible to confirm the approach that
service quality has impact on customer satisfaction in hostel industry, especially by the
dimension of service quality, tangibility and assurance. These dimensions can be recognized
by the appearance of physical facilities, the knowledge and courtesy of employees and their
ability to convey trust and confidence(Parasuraman, et al., 1988).
27
Globally the results of the present research were supported by the conceptual model
that the service quality has impact on customer satisfaction.The results from multiple linear
regression also conducted that service quality can be used to predict customer satisfaction
and based on all factors, the tangibility has the greatest impact on customer satisfaction,
which reached = 0.626, followed by the dimension assurance with = 0.133 (Table 6), and
the dimension empathy deserve more attention face the others dimensions of service quality
in the hostel based on lower level of perception presented (Table 5).
Thus, the service quality and customer satisfaction has been considered very
important to help to improve the overall performance of business (Magi & Julander, 1996),
especially, for tourism industries. In the hostel industry, the managers have to delivery high
level of service to customers, focusing in the tangibility and assurance dimensions.
According by the literature review and the finding in this research is possible to state
that the hostel manager has to improve the services offered to customers with the purpose
to reach the customer satisfaction and also build the competitive advantage against the
competitors based on differentiation.
5.2 Implication
The findings of this research have important implications for managers of Dublin
Hostels in terms of the level of service can be provide to customers and also which
dimensions of service quality has influence on customers satisfaction.
In particular, the finding of this research have important contribute to academic and
business industry based on fact that the relationship between service quality and customer
satisfaction has been explored in the hospitality industry in general, specifically in hotels, but
in the literature was not possible to identify research approaches these constructs in the
hostel industry.
This research also indicate that managers of hotels has to direct efforts to improve
the tangible aspects of the hostel, involving the appearance of physical facilities in general
and also improve the the knowledge and courtesy of employees and their ability to convey
trust and confidence to the customers because these factors are identified as the key
dimensions of service quality with impact on customer satisfaction.
28
5.3 Limitation and Further Researches
Since this is an academic research with limited time and without any budget destined
to this project, was necessary to target only one hostel in Dublin to conduct this research
instead to expand this to other hostels being possible to compare the performance between
them. In this case, is not possible to generalize the impact of service quality on customer
satisfaction in the hostel industry.
The sample used in this research isrepresentative based on 324 questionnaires

collected online from customer of this specific hostel in Dublin but is not possible to make
generalization because not represent all the hostels in Dublin
Although this research provides some significantinsights into service quality in the
hostel industry,there is still a chance to extend the findings to gain amore comprehensive
understanding of the nature of hostel services. The future research may extend this study of
relationship betweenservice quality and customers satisfaction to a bigger number of hostels
and develop a comparative analysis between them and also include others factors beside
the service quality, including price, brand image, as a determinant of customer satisfaction.
The current research can also be expanded to hotel and hostel together with the
objective to identify the level of difference between the customers perceptions based on the
service offered and the level of satisfaction in those business units.
29
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40
7 Appendix
7.1 Data Instrument Survey
SPIRE HOTEL - Measurement of Service Quality
If you have stayed at SPIRE HOSTEL recently, we would love to know what you thought of your stay.
Please complete the hotel guest satisfaction survey to help us create a better experience, as well as
to help us better serve our valuable service to our guests in the future!
Please indicate your level of agreement with the following statements:
Strongly Disagree Disagree, Neither Agree Strongly Agree

Disagree Disagree
The SPIRE HOSTEL has

modern looking equipment.
The SPIRE HOSTELs
physical features are visually
appealing.
The SPIRE HOSTELs
reception desk employees
are neat appearing.
Materials associated with the
service are visually
appealing at the SPIRE
HOSTEL.
When the SPIRE HOSTELs
employees promise to do
something by a certain time,
it does so.
When you have a problem,
the SPIRE HOSTELs
employees show a sincere
interest in solving it.
The SPIRE HOSTELs
employees perform the
service right the first time.
The SPIRE HOSTELs
employees provide its
service at the time it
promises to do so.
The SPIRE HOSTELs
employees insist on error
free records.
Employees in the SPIRE
HOSTEL tell you exactly
when the services will be
performed.
HOSTEL give you prompt
service.
HOSTEL are always willing
to help you.
HOSTEL are never too busy
to respond to your request.
The behaviour of employees
in the SPIRE HOSTEL instils
confidence in you.
41
You feel safe in your
transactions with the SPIRE
HOSTEL.
HOSTEL are consistently
courteous with you.
HOSTEL have the
knowledge to answer your
questions.
The SPIRE HOSTELs
employees give you
individual attention.
operating hours convenient
to all its customers.
employees who give you
personal attention.
The SPIRE HOSTELs
employees have your best
interests at heart.
The employees of the
SPIRE HOSTEL understand
your specific needs.
Overall, I am satisfied with
the SPIRE HOSTEL
services.
I say positive things about
the SPIRE HOSTEL to other
people.
I intend to continue being a
customer of the SPIRE
HOSTEL for a long time to
come.
I will encourage friends and
relatives to use the service
offered by the SPIRE
HOSTEL.
Gender
o Male
o Female
Age Group
o Between 18 and 21 years old

o More than 40 years old
Nationality (Continent):
____________________
How many days have you stayed in the SPIRE HOSTEL?
________________________
42
7.2 Ethical Guidelines and Procedures for Research involving Human Participants
National College of Ireland

Human Participants Ethical Review Application Form
All parts of the below form must be completed. However in certain cases where sections are not
relevant to the proposed study, clearly mark NA in the box provided.
Part A: Title of Project and Contact Information

Name
VALTER JOSE MARQUES DA SILVA
Student Number (if applicable)

X13118595
Email
VALTERMURRUGA@HOTMAIL.COM
Status:
Undergraduate X
Postgraduate
Staff
Title of Research Project

Measurement of Service Quality and Customer Satisfaction in a Dublin Hostel
Have you read the NCI Ethical Guidelines for Research with Human Participants?
Yes X
No
Please indicate any other ethical guidelines or codes of conduct you have consulted
Has this research been submitted to any other research ethics committee?
Yes
No X
If yes please provide details, and the outcomes of this process, if applicable:
Is this research supported by any form of research funding?
Yes
No X
If yes please provide details, and indicate whether any restrictions exist on the freedom of the
researcher to publish the results:
43
Part B: Research Proposal
Briefly outline the following information (not more than 200 words in any section).
Proposed starting date and duration of project

03/02/2014 - 4 MONTHS
The research aims and objectives

IDENTIFY THE RELATIONSHIP BETWEEN SERVICE QUALITY AND CUSTOMER SATISFACTION
The rationale for the project

BUSINESS IMPROVEMENTS
The research design

Literature Review
The methods of data collection

SURVEY
The research sample and sample size

GUEST OF HOSTEL IN DUBLIN - 300 CASES
The nature of any proposed pilot study

n.a.
The methods of data analysis

Quantitative Methods using statistics methods.
Part C: Ethical Risk
Please identify any ethical issues which will arise and how you will address them.
n.a.
Please indicate any risk of harm or distress to participants.

n.a.
Please indicate how you will address this risk (e.g. debriefing procedures, etc.).
n.a.
44
Do the participants belong to any of the following vulnerable groups?
(Please tick all those involved).
Children;
The very elderly;
People with an intellectual or learning disability
Individuals or groups receiving help through the voluntary sector
Those in a subordinate position to the researchers such as employees
Other groups who might not understand the research and consent process
Other vulnerable groups
How will the research participants in this study be selected, approached and recruited?
Current Guest during the check out
What inclusion or exclusion criteria will be used?

The entire guest can be part of this research
How will participants be informed of the nature of the study and participation?
Short explanation inserted in the beginning of survey
What procedures will be used to document the participants consent to participate?

Anonymous participation will not require consent to participate.
If vulnerable groups are participating, what special arrangements will be made to deal with issues
of informed consent/assent?
n.a.
Please include copies of any information letters and consent forms with the application.
Part D: Confidentiality and Data Protection

Please indicate the form in which the data will be collected.
Identified Potentially Identifiable De-Identified
What arrangements are in place to ensure that the identity of participants is protected?
n.a
Please indicate any recording devices being used to collect data (e.g. audio/video).
n.a.
45
Please describe the procedures for securing specific permission for the use of these recording
devices in advance.
n.a.
Please indicate the form in which the data will be stored.

Identified Potentially Identifiable De-Identified
Who will have responsibility for the data generated by the research?
Valter Jose Marques da Silva
Please describe the procedures of the storage and destruction of data.

external flash drive with personal password to access the file
Dissemination and Reporting
Please describe how the participants will be informed of dissemination and reporting (e.g.
submission for examination, reporting, publications, presentations)?
n.a.
n.a
Part E: Signed Declaration
I confirm that I have read the NCI Ethical Guidelines for Research with Human Participants, and
agree to abide by them in conducting this research. I also confirm that the information provided on
this form is correct.
Signature of Applicant ________________________________________________________
Date 28/04/2014______________________________
Signature of Supervisor (where appropriate) ___________________________________________
Date _______________________________
46

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The Impact of Service Quality on Customer

National College of Ireland

Higher Diploma in Science in Data Analytics

Student Name: Valter Jose Marques da Silva

Key Words: Customer Satisfaction, Service Quality, Service Quality Dimensions,

Figure 1Service Quality and Customer Satisfaction ............................................................ 12

Table 1 SERVQUAL Model ................................................................................................... 8

1.1 Introductory Background

A number of researchers have attempted to apply related theories and methods in

The importance of measurement ofservice quality offered by companies has been

One approach considered relevant to achieve differentiation between competitors is

1.2 Reasons for Explore this Area

Customer satisfaction can result in a positive word of mouth based in a customer

1.3 Research Questions

In order to discuss the impact of service quality on customer satisfaction, the

Which dimensions of service quality have impact on customer satisfaction in a

In answering the above questions, it is expected to identify which dimensions of

1.4 Objective of the Research

The objective of this research is identify is there is relationship between service

1.5 Structure of the Research

2.1 Hostels Context

The concept of hostel is related to budget-oriented, dormitories - shared-room and it

2.2 Service Quality

In the tourism industry the delivery of quality in services is an element of strategic

Major reasearch contributions identified the service quality as a result of comparasion

The pioneers to justify the measurement of service quality based in perfomance,

The SERVQUAL mode is comprises by 44 items (Table 1)divided in five dimensions

Dimensions Expectations Performance

Source: Parasuraman, et al. (1988)

The distinctionbetween those twoconcepts expectation and performanceis very

Cronin e Taylor (1992) emphasized that the service quality is conceptualized by

2.2.3 Evaluation of SERVQUAL and SERVPERF Model

In the literaturethere are otherstudies thatconfirm the findingsobtained byCronin &

2.3 Customer Satisfaction

The definition of satisfaction concept appeared in a classic research by Cardozo

Many researchers approach the concept of customer satisfaction as a customers

2.4 Service Quality and Customer Satisfaction

The measurement of service quality has been identified as a crucial factor

According by the relationship between service quality and customer satisfaction,

Figure 1Service Quality and Customer Satisfaction

2.4.1 Service Quality and Customer Satisfaction in theHospitality Industry

In a highly competitive environment in the hospitality industry, meant that companies

3.1 Conceptual Framework

The construct service quality in this conceptual framework is comprised by five

3.2 Hypothesis Formulation

The dimension tangibility of service quality model refers to appearance of physical

H1: There is a significant relationship between the dimension tangibility of service

H2: There is a significant relationship between the dimension reliability of service

The dimension responsiveness refers to the willingness to help customers and to

H3: There is a significant relationship between the dimension responsiveness of

H4: There is a significant relationship between the dimension assurance of service

H5: There is a significant relationship between the dimension empathy of service

Figure 2ConceptualFramework -Service Quality and Customer Satisfaction.

3.3 Data Instrument

The questionnaire is comprise by three divisions consisting of 32 questions (

Table 2Data Instrument - Structure

Divisions Items Source

Customer Satisfaction Customer Satisfaction Adapted from Zeithaml et al. (1996)

Considering the purpose of this exploratory research, the non-probabilistic sample

3.5 Data Analysis Procedure

4.1 Reliability and Sample Characteristic

Analysing the five constructs of service quality, including tangibility, reliability,

Table 3Reliability Analysis of Constructs