Effect Of Service Quality On Customer Retention In Hotel Sector, 2017

The success of any organization lies on the accessibility of customers. So, to achieve customer retention strategy service sectors need to have preparing quality service in any business direction in each and every dimension. The objective of the study was to indicate the effect of service quality on retaining existed customers of the 5 selected hotels in Gambella Regional State at Gambella Town. Therefore, the study tries to designate those effects of the service quality in relation to retention of customers. The study employed cross-sectional design with a quantitative and qualitative type of data was used for the purpose of the study. In order to collect the primary data the modified service quality model of HOLSERV model were used with in an item of 22 questions in two dimensions (perception and expectation) of customers. This is collected through convenience sampling techniques from the regular customers of those hotels were focused. The finding indicated that service quality dimension has perfectly positively correlated and they have a strong correlation with that of customer retention. Moreover, the expectation and perception of the service quality has a gap between actual service and expected service of the customers. The study recommended that Stakeholders be remind that customer oriented market is better than money oriented to generate wealthy maximization instead of profit maximization