The Role of Service Quality in
Improving Customer Satisfaction: A Study in the Hospitality Business of
University
Minrohayati1*, Kurnia Endah Riana2,
Untung Utan Sufandi3, Rini Dwiyani Hadiwidjaja4, Yanuar
Trisnowati5
Universitas
Terbuka, Tangerang, Indonesia
E-mail:
[email protected], [email protected], [email protected],
[email protected], [email protected]
Corresponding Author: Minrohayati
|
Abstract |
|
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customer satisfaction,
hospitality business, Indonesia, service quality, Universitas Terbuka |
This
research aims to analyze the dimensions of Service Quality, analyze service
attributes, and analyze the influence of Service Quality on Customer
Satisfaction at the Hospitality Business. Universitas Terbuka (UT), as a
State University with Legal Entity (SU-LE) in Indonesia, operates various
business units, including hospitality services such as guesthouses and
meeting facilities. This research focuses on analyzing the service quality
and customer satisfaction within these hospitality services of UT.� UT aims to improve non-tuition revenue
streams through its business operations, making the quality of its
hospitality services a crucial aspect of its overall performance. Respondents
who completed this study were as many as 379 customers of guesthouses and
meeting facilities. The data used in this study is primary data sourced from
questionnaires distributed to customers. The research methods used are gap
analysis, IPA analysis, and the Structural Equation Model. The variables that
influence customer satisfaction are tangible and responsiveness variables,
while the variables reliable, assurance and empathy do not influence guest
house UT customer satisfaction. This research contributes to the attributes
of service quality and customer satisfaction in a state university
hospitality business. This study is an exploration of each customer's
preferences regarding perceived satisfaction and the level of importance
expected for the services provided by hospitality businesses. under the terms and conditions of the Creative
Commons Attribution (CC
BY SA) license (https://creativecommons.org/licenses/by-sa/4.0/). |
1 Introduction
UT's
non-SPP income sources come from its own business income and academic
administration income. Own business income through income from UT business
units originating from the Services and Facilities Division in the form of
cooperation in utilizing assets in the form of renting business buildings for
the Karunika Cooperative office, partner bank services, and use of supporting
facilities (guesthouse and meeting rooms) for training and meetings with
members. partner employees as well as for weddings and other events (Rector's
Annual Report). Apart from that, BPPU UT is also developing cooperation to
utilize UT expertise services which are managed professionally by the Training
Institute Division.
The
Training Institute Division manages requests for expertise services in the form
of instructional training and consultations on the Distance Education system
which appears to be increasing, textbook writing, management and accountability
of BOS funds, and school financial accounting. All UT services or business
units managed by BPPU are UT hospitality businesses. In general, the
hospitality business is a service-based business or public service to guests.
Hospitality or friendliness is the main key to the success and smooth running
of public services.
Based
on the Chancellor's Annual Work Report for 2019 and 2020, it is known that
there has been a decrease in business unit income sources due to the Covid-19
pandemic situation, several UT business unit components that have decreased
including asset utilization and training by BPPU (70%), Online Exams (23%),
Bank services (31%), TBO (45%), and Atpem Tutorial (9%). Meanwhile, the Admissions component,
PPs, and KTM exams experienced an increase of 185% (Open University, 2020).
Based on preliminary studies, it is known that for three consecutive years,
2019, 2020, and 2021, there was a decrease in the average occupancy rate of UT
guesthouses and the average rate of UT courtroom renters.
Figure 1. Average Occupancy Rate for Guesthouses and Average Rate for Courtroom
Tenants
Figure
1 shows that UT's existing hospitality business units, namely lodging and UT
courtroom rental, experienced a decline in customers. In 2020 there was a very
drastic decline, the main cause being the COVID-19 pandemic and the
government's establishment of PPKM. However, the average occupancy rate for
Wisma UT accommodation has not increased during the new normal conditions in
2021. The contribution of Business Units to UT PNBP in 2020 was 0.24%, down
from 0.74% in 2019. Income from BPPU comes from asset utilization and training
amounting to IDR 2,666,060,470.00, a decrease of 70% compared to 2019. The decrease
in the average occupancy rate of UT guesthouses is closely related to the
quality of services provided. UT guesthouse accommodation is a source of
business unit income (BPPU) which comes from consistent and profitable asset
utilization. UT guesthouses are one of UT's dominant hospitality businesses.
The hospitality business is a service-based business or public service to
guests (Wolor, Christian Wiradendi, and Sari, 2021).
Hospitality or friendliness is the main key to the success and smooth running
of public services. The hospitality business is closely related to Service
Quality and Customer Satisfaction. Service quality is needed in the hospitality
business considering that customers have hopes or expectations that always want
to be fulfilled and satisfied. Customers always hope to get maximum service
from service providers (Sienny, 2001).
This phenomenon and preliminary study
are the background for this research, where the author tries to analyze the
service quality and satisfaction of lodging customers and which in the end can
develop a UT hospitality business model that is ideal, profitable, and follows
the characteristics of the Universitas Terbuka as a SU-LE. The contribution of
this research is to analyze the hospitality business of a university in
Indonesia and find out how the quality of service provided to customers and
customer expectations for the services provided will influence the level of
consumer satisfaction.
The
Service Quality Scale (SERVQUAL) initially consisted of ten dimensions, which
then after further testing by Parasuraman, A; Zeithami,
Valarie A; Berry (1985) reduced from ten to five dimensions. The five main
dimensions of SERVQUAL are reliability, responsiveness, assurance and empathy,
and tangibles. The SERVQUAL model is one of the most widely used models to
evaluate customer expectations and their perceptions of service quality. The
main dimensions of SERVQUAL used are (Chui et al., 2016; Parasuraman, A; Zeithami, Valarie A; Berry, 1985):
1.
Tangibles, something that
is visible or tangible in service must accurately project the quality of the
service to be provided including physical facilities, equipment, employees, and
communication facilities (Mariana et al., 2020). Tangibles are available
physical facilities, equipment communication facilities, etc. that can and must
be present in the service process. Assessment of this dimension can be expanded
in the form of relationships with other consumers who use services.
2.
Reliable, leaving consumers
waiting, especially without a clear reason, will create a negative impression
that should not occur. Unless this error is addressed very quickly, it can
become something memorable and a pleasant experience.
3.
Assurance, namely the
ability to convey trust and confidence to customers through the services
provided (Chui et al., 2016). Assurance includes the knowledge, ability,
friendly, polite, and trustworthy nature of contact personnel for Reliability,
namely the ability to realize promises made in the form of service performance
immediately, accurately, and satisfactorily (Mariana et al., 2020; Yousapronpaiboon, 2014). Reliability is the ability to
provide promised services accurately and the ability to be trusted, especially in
providing services promptly, in the same way as promised, and without making
mistakes every time.
4.
Responsiveness, namely the
responsiveness of lecturers and employees to serve students well and
satisfactorily. In other words, good faith to respond quickly to help resolve
problems and provide services to customers (Chui et al., 2016; Mariana et al.,
2020). Responsiveness is the willingness or desire of employees to help and
provide services that consumers need. eliminate the nature of consumer doubts
and feel free from danger and risk.
5.
Empathy, namely the ability
to provide more personal or intimate attention to consumers (Mariana et al.,
2020; Yousapronpaiboon, 2014). Empathy includes the
attitude of personal and company contact to meet consumer needs and
difficulties, good communication, personal attention, and ease of communication
or relationships.
Figure 2. Research Framework of
The Study
The research conceptual framework is a
research roadmap that includes research stages over 2 years. The first year's
research was quantitative research using a survey method on service quality and
customer satisfaction of open university hospitality businesses. The five
dimensions of service quality will be analyzed using the Gap Analysis method
and all service attributes will be mapped using the Importance-Performance
Analysis (IPA) Matrix.
2��� Materials and Methods
The
research method used is a quantitative approach. Quantitative methods were used
in research regarding service quality, business development priorities, and
customer satisfaction. The data used in this research is primary data. Primary
data is data obtained directly from data sources. The data sources for this
research are in the form of questionnaires distributed to visiting customers,
interviews, and observations. The population in this study were guests of the
Open University's hospitality business during the last 6 months, either staying
overnight or using the court and meeting rooms. The sampling technique in this
research is by using Accidental Sampling. Accidental sampling is the process of
taking respondents to be used as samples based on samples that the researcher
happens to meet. then respondents who are deemed suitable are used as data
sources (Sugiyono, 2018). The sample data used in
this research was 380 customers.
A
questionnaire was used to collect data about service quality and customer
satisfaction of hospitality business users at the Open University from 2019 to
2021. The questionnaire used a 5-point Likert scale: 1 = strongly disagree and
5 = strongly agree. The questionnaire covers five dimensions of academic
service quality, namely tangibles, reliability, responsiveness, assurance, and
empathy which were adopted and modified by (Chui et al., 2016; Mariana et al.,
2020; Mulyono et al., 2020; Sembiring & Rahayu,
2020; Udo et al., 2011). The stages of data analysis carried out in the
research are as follows:
a.
Gap analysis SERVQUAL
method
The
SERVQUAL method is one of the most widely used models to evaluate customer
expectations and their perceptions of service quality. A 5-point Likert scale
was applied to measure the variables. Parasuraman, Zeithaml, and Berry (1985)
developed a model and used the words "Perceived service quality" as a
substitute for service quality. Perceived service is the result of a comparison
between customer expectations before receiving service (expected service) and
the customer's actual service experience. Desired expectations include customer
demands and desires related to the services provided.
The
gap value for each pair of questions uses the formula Zeithaml, et al., 1990 (Tjiptono, 2019). Gap Score = Average Perception Score �
Average Expectation Score.
b.
Importance-Performance
Analysis (IPA) matrix
The
IPA matrix consists of an X-axis representing importance and a Y-axis
representing performance. The results of the IPA Matrix are in the form of four
quadrants, each quadrant is a combination of interest and performance given by
respondents for each service with different values. The four science quadrants
have the following characteristics (Silva & Fernandes, 2010); Quadrant A
(Concentration here) � high importance, low performance: requires immediate
attention for improvement and is a major weakness; Quadrant B (Staying with
good work): high importance, and high performance, indicates opportunities to
achieve or maintain competitive advantage and is a key strength; Quadrant C
(Low priority) - low importance, low performance: is a minor weakness and does
not require additional effort; and Quadrant D (Likely redundant) � low
importance, high performance: indicates that business resources committed to
this attribute would be redundant and should be used elsewhere.
c.
Test the hypothesis using
the Structural Equation Model (SEM) method
This
research uses Structural Equation Modeling (SEM) analysis with PLS software to
process data. Seven steps must be taken to prepare a path analysis, namely
(Ferdinand, 2016): (1) Development of a Theoretical Model; (2) Development of
Path Diagrams or flow charts; (3) Convert flow diagrams into structural
equations and measurement models; (4) Selecting input matrices and model
estimation; (5) Analyze possible identification problems; (6) Evaluation of
goodness of fit criteria; and (7) Evaluation of goodness of fit criteria.
Hypothesis
testing is carried out by analyzing the C.R value and P value resulting from
processing the Regression Weights test data and then comparing it with the
required statistical limits, namely above 1.96 for the C.R value and below 0.05
for the P value. Next, we will discuss hypothesis testing. carried out in
stages in the order of the hypotheses that have been proposed. In this
research, testing the causal relationship between variables was carried out
using a one-sided test at a significance level of 5%.
3 Results and Discussion
The respondents sampled in
this research were visiting customers of the Open University hospitality
business who were deliberately met after using the facilities, either lodging
or guest houses, or using courtrooms and meeting rooms during the last 6
months, namely from March to August 2023. The guest customers who were
respondents in this study were 161 people or 42% male and the remaining 219
people or 42% were female. The age of the UT guest house customers who were
respondents was in the age range of 21 to 30 years, namely 153 people or 40%.
Customers aged 31 to 40 years were 24% and customers aged 41 to 50 years were
79 people or 21% of the total number of respondents. Meanwhile, the remainder
is 6% of customers aged less than 20 years, 3 people aged more than 60 years or
it could be said that it is only 1%. 10 responses did not mention their age
profile. The job profile of respondents shown in Figure 2 shows that the
majority of visitors work as academics, whether as lecturers, teachers,
teaching staff, and even students and students. 14% of guest visitors have jobs
as private employees and as many as 42 people or 11% of guest visitors work as
Civil Servants (PNS), while 17 guest visitors are entrepreneurs. Some guests do
not mention their occupation, namely 14%. Nearly 50% of the visitors who were
research respondents had personal goals, while 44% stayed at the UT guesthouse
as part of an official assignment by an agency. 7% of visitors did not mention
the purpose of using lodging facilities and meeting rooms.
The SERVQUAL method is one
of the most widely used models to evaluate customer expectations and their
perceptions of service quality. A 5-point Likert scale was applied to measure
the variables. The points applied are (1) strongly disagree, (2) disagree, (3)
agree, (4) strongly agree, and (5) strongly disagree. The questionnaire covers
five dimensions of academic service quality, namely tangibles, reliability,
responsiveness, assurance, and empathy. Each indicator will assess the
perceived satisfaction (performance) and importance (importance) expected by
guest customers. The gap value for each pair of questions uses the formula
Zeithaml, et al., 1990 (Tjiptono, 2019). Gap score =
Average importance score � Average satisfaction score.
The reliability test is the
extent to which measurement results using the same object will produce the same
data (Sugiyono, 2018).
Reliability is a tool for measuring a questionnaire which is an indicator of a
variable or constructs. A questionnaire is said to be reliable or reliable if
one's answers to statements are consistent or stable from time to time. The
reliability of a test refers to the degree of stability, consistency,
predictability, and accuracy. Measurements that have high reliability are
measurements that can produce reliable data (Ghozali, 2018).
A validity test is a test
that functions to see whether a measuring instrument is valid or invalid (Ghozali, 2018). The
measuring tools referred to here are the questions in the questionnaire. A
questionnaire is said to be valid if the questions in the questionnaire can
reveal something that is measured by the questionnaire. A questionnaire is said
to be valid if the questions on the questionnaire can reveal something that
will be measured by the questionnaire. A questionnaire can be said to have high
validity if the results carry out its measuring function, or provide precise
and accurate measurement results following the intent of the test. A test that
produces data that is irrelevant to the purpose of the measurement is said to
be a questionnaire that has low validity.
The results of the
instrument validity test showed that all environmental, social, and governance
variable question items had a p-value product-moment correlation < 0.05 so
it was concluded that the questions used to measure environmental, social, and
governance variables were valid and worthy of further analysis. From the
results of the instrument reliability test, the value of Cronbach's alpha on
environmental, social, and governance variables was > 0.7, so it was
concluded that the preparation of questionnaire questions regarding
environmental, social, and governance was declared reliable and trustworthy as
a measuring tool that produces consistent answers.
The research hypothesis can be accepted if the p-value
< 0.05 (α=5%). The following is the estimated value of the path
coefficient and the results of the research hypothesis test:
Table 1. Path Coefficient Estimation Value and Hypothesis
Testing
|
Path |
Original Sample |
T Statistics |
P Values |
Adjusted R2 |
Decision |
|
Tangible →
Satisfaction |
0,355 |
2,904 |
0,004 |
0.483 |
Accepted |
|
Reliable
→ Satisfaction |
0,132 |
0,986 |
0,324 |
Rejected |
|
|
Responsiveness
→ Satisfaction |
0,195 |
2,235 |
0,025 |
Accepted |
|
|
Assurance
→ Satisfaction |
0,050 |
0,429 |
0,668 |
Rejected |
|
|
Empathy
→ Satisfaction |
0,017 |
0,147 |
0,883 |
Rejected |
Table 1 shows that the
path coefficient for the influence of tangibles on satisfaction is 0.355 with a
p-value of 0.004 < 0.05. These results conclude that tangible has a
significant effect on satisfaction. This means that the better the tangible
factors can significantly increase satisfaction. Based on these results, the
hypothesis which suspects that tangible factors influence satisfaction can be
accepted (Ha is accepted). The path coefficient for the influence of reliable
influence on satisfaction is 0.132 with a p-value of 0.324 > 0.05. These
results conclude that reliability has no significant effect on satisfaction.
This means that the better the reliability factor, the satisfaction does not
increase significantly. Based on these results, the hypothesis which suspects
that reliable factors influence satisfaction cannot be accepted (Ha is
rejected).
The path coefficient for the influence of
responsiveness on satisfaction is 0.195 with a p-value of 0.025 < 0.05.
These results conclude that responsiveness has a significant effect on
satisfaction. This means that the better the responsiveness factor, the
satisfaction will increase significantly. Based on these results, the
hypothesis that the responsiveness factor influences satisfaction can be
accepted (Ha is accepted). The path coefficient for the influence of assurance
on satisfaction is 0.050 with a p-value of 0.668 > 0.05. These results
conclude that assurance has no significant effect on customer satisfaction.
This means that the assurance factor that is getting better does not
significantly increase satisfaction. Based on these results, the hypothesis
that the assurance factor influences satisfaction cannot be accepted (Ha is
rejected). The path coefficient for the influence of empathy on satisfaction is
0.017 with a p-value of 0.883 > 0.05. These results conclude that empathy
has no significant effect on customer satisfaction. This means that the empathy
factor getting better does not significantly increase satisfaction. Based on
these results, the hypothesis that the empathy factor influences satisfaction
cannot be accepted (Ha is rejected).
The R-Square value shows how much the exogenous
variable can explain (influence) the endogenous variable. The R-Square value
shows how much the exogenous variable can explain (influence) the endogenous
variable. It is known that the R-Square value of the investment decision
variable is 0.483, which means that the percentage of customer satisfaction
that can be explained by tangible, reliable, responsiveness, assurance, and
empathy is 48.3%, while the remaining 51.7% is explained by other variables
outside the model.
Discussion
The Universitas Terbuka as one of the public service
educational institutions is expected to be able to improve its performance,
especially services to the community by practicing healthy business. A
competitive service business means being able to provide services to the public
at market prices or below but still paying attention to the quality of the
services provided. The results of this research empirically prove that service
quality from the five dimensions has a significant effect on student satisfaction.
UT guesthouse customer satisfaction is influenced by service quality in five
dimensions, namely Tangibles, Reliability, Responsiveness, Assurance, and
Empathy. Service quality influences satisfaction as proven in this research,
this is in line with research results (Bass et al. 2003; Hasan et al. 2009; Hanaysha et al. 2011; Chui et al. 2016; Weerasinghe and
Fernando 2018; Anisah et al. 2020; Mariana et al. 2020; Mulyono et al. 2020;
Naim 2020). According to Nalurita & Mulyanto, 2021 service quality will influence satisfaction.
Tangibles or the physical form of the university are
the location of the UT guest house, the cleanliness and comfort of the space,
and the availability of other supporting facilities. If the physical evidence
provided is good, student expectations will be high. The better the customer's
perception of the tangibles or physical evidence of the guest house or
accommodation, the higher the satisfaction will be and vice versa, if the
customer's perception of the physical evidence is weak, the satisfaction will also
be lower. This supports several previous studies, including (Hasan et al. 2009;
Hanaysha et al. 2011; Chui et al. 2016; Mulyono et
al. 2020). The forms of service in the form of Tangibles provided by the UT
guest house include the following: The location of the university is strategic
and easily accessible, clean and comfortable rooms are available, has an
attractive layout, attractive room facilities are available, has comfortable
room facilities, provides complete amenities, has various facilities such as a
gym, tennis court, sauna, sufficient fire extinguishers are available, has a
complete meeting room, has a comfortable environment, promotional materials via
leaflets, web and social media.
There is no significant influence between
Reliability and customer satisfaction. The results of this study are in line
with (Hasan et al. 2009; Hanaysha et al. 2011; Dursun
et al. 2013; Hazilah Abd Manaf et al. 2013; Shaari
2014; Chui et al. 2016; Weerasinghe and Fernando 2018; Mulyono et al. 2020).
Reliability is the university's ability to provide services following what is
promised accurately and reliably. The form of service included in Reliability
relates to Wisma UT employees being able to provide services as promised, Wisma
UT employees being reliable in resolving guest service problems, Wisma UT
providing clear information about the quality of their services, Wisma UT
having accurate service performance, Wisma UT provides timely service, UT
guesthouse resolves service problems sincerely, and UT guesthouse maintains the
confidentiality of guest data.
Responsiveness influences customer satisfaction. The
results of this study support research (Hasan et al. 2009; Hanaysha
et al. 2011; Ahmed and Mehedi Masud 2014; Chui et al. 2016; Mulyono et al.
2020). There is no significant influence between assurance and satisfaction. Thus the hypothesis which states that there is no
significant influence between assurance and satisfaction can be accepted. These
results are in line with research (Hasan et al. 2009; Hanaysha
et al. 2011; Dursun et al. 2013; Hazilah Abd Manaf et
al. 2013; Ahmed and Mehedi Masud 2014). Empathy does not affect customer
satisfaction. Wisma UT employees give special attention to each guest, Wisma UT
employees understand the specific requests of each guest, Wisma UT employees
serve them wholeheartedly, and Wisma UT employees receive positive feedback
from each guest. The research results are as follows (Hasan et al. 2009; Hanaysha et al. 2011; Dursun et al. 2013; Ahmed and Mehedi
Masud 2014; Shaari 2014). However, the results of this study are not in line
with (Hazilah Abd Manaf et al. 2013; Chui et al.
2016).
4 Conclusions
The tangible dimension of the biggest
gap value occurs in the swimming pool facility indicator. The reliable
dimension that has the largest gap value is accurate service performance. The
largest gap value in the responsiveness dimension is the indicator that UT
guesthouse employees are ready to respond to guest requests. The indicator that
UT guesthouse employees know to provide information services regarding areas
around UT (malls, tourist attractions, etc.) is the indicator that has the
largest gap value in the assurance dimension. The last one is an indicator that
UT guesthouse employees understand the specific requests of each guest who has
the largest gap in the empathy dimension. There are no variables in quadrant A
or it could be said that the Open University's hospitality services. The
Responsiveness and Assurance variables are in quadrant B, which means that variables
have a relatively high level of satisfaction so they must be maintained.
Quadrant C is the low-priority quadrant with low satisfaction values and low
importance, namely Tangible and Empathy. Variables that are in quadrant D
(Possibility of exaggeration) - low importance, high performance. Variables
that are considered less important and excessive so they can be reduced to save
costs are Reliable. A competitive service business means being able to provide
services to the public at market prices or below but still paying attention to
the quality of the services provided. The variables that influence customer
satisfaction are tangible and responsiveness variables, while the variables�
reliability, assurance, and empathy do not influence guest house UT customer
satisfaction.
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