Measuring service quality perceptions of customers in the hotel industry of Pakistan

This study looks at the relationship among perceived service quality, perceived price fairness, and customer loyalty. It further examines the role of customer satisfaction as a mediator in the relationship between perceived service quality and customer loyalty, and perceived price fairness and customer loyalty. We argue that customers’ needs are less uniform, and so their expectations, perceptions, satisfaction and loyalty vary across their characteristics. To this end, we draw on a sample of 252 consumers of the hotel industry sector in Pakistan. We employ gap analysis using paired-sample t-test and analysis of variance to test for the variations in the customers’ expectations, perceptions, satisfaction and loyalty. Following that, we test the relationships. Our results identify variances in the expectations, perceptions, satisfaction and loyalty across the customers’ demographics. Customer satisfaction partially mediates the relationship between perceived service quality and customer loyalty, and fully mediates the relationship between perceived price fairness and customer loyalty. Based on results, we drew implication for theory and practice.