Customer Satisfaction As A Predictor Of Customer Advocacy

Customer Satisfaction as a Predictor of Customer Advocacy and Negative Word of Mouth : A Hotel Industry Study Source: Business Journal From Fore

Presented by: Shreyas Laste Roll No : 28

Introduction 

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A satisfied person is going to tell 6 people and a dissatisfied person is going to tell 13 people Customer Advocacy has proved to be most powerful tools for marketing and companies This study is to find relation of customer satisfaction with customer advocacy and negative word of mouth in hotel industry

Objectives 

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To develop and standardize a measure in hotel industry for customer satisfaction, customer advocacy and negative word of mouth To evaluate the underlying factor in hotel industry for customer satisfaction, customer advocacy and negative word of mouth

Continued… 

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To evaluate the relationship between customer satisfaction and customer advocacy To evaluate the relationship between customer dissatisfaction and negative word of mouth To open new vistas for further research

Methodology 

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Exploratory Population: The population is hotel industry of Gwalior Region Sample size: 100 Customer Sampling Elements: The sampling element was the individual customer of hotel industries of Gwalior Region

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Tools for Data Collection: Self designed questionnaire on scale of 1 to 5. Tools for Data Analysis: > Internal consistency test > Reliability and Validity test > Factor analysis > Regression test

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Internal Consistency test: Iterative item to TC was applied on the response received from consumer of hotel industry Items having higher coefficient value than the cut off value were retained for further analysis

ITEMS

COMPUTED CORRELATION VALUE

Lighting

0.34345

Furniture

0.46785

Décor

0.36587

Impression

0.36217

Safety

0.43009

Delicious

0.50359

Hospitable

0.36784

Competence

0.42345

Politeness

0.54567

Interest

0.32409

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Reliability test:

> It was applied on customer satisfaction, advocacy and negative word of mouth measure using SSPS and value of Cronbach Alpha was found to be 0.0892  Validity test: > Questionnaire was checked through face validity method and was very high

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Factor analysis: Principal factor analysis with Varimax rotation and Kiser normalization was applied. The details is shown as

Factor Name

Eigen value Total

Percieved substandar

Good ambience

Warm Hospitality

8.052

7.570

2.847

Variable convergence

Loading Value

Standard not mntd

0.88

Staff not trained

0.852

Difficult to access

0.774

Service inadequate

0.759

Below expection

0.682

Good furniture

0.857

Good décor

0.797

Good lighting

0.781

Positive impression

0.607

Delicious food

0.509

Willingness

0.739

Security

0.645

Respectful treatment

0.626

% of variance 22.366

21.027

7.909

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Regression analysis: Satisfaction and advocacy Its calculated by taking total customer satisfaction and advocacy by using SSPS software. CS is independent and advocacy is dependent variable and regression is calculated

Model

Unstandardized co-eff B

Std. Error

(constant)

29.375

5.557

VAR0001

0.480

0.084

Standardized co-eff

T

Sig

5.267

0

5.712

0

Beta

0.5

Regression analysis: Satisfaction and negative word of mouth  Its calculated by taking total customer satisfaction and negative word of mouth by using SSPS software.  CS is independent and advocacy is dependent variable and regression is calculated 

Model

Unstandardized co-eff B

Standardized co-eff

T

Sig

Collinearity Statistics

Std. Error

Beta

(constant)

54.150

9.4227

VAR0001

-0.122

0.142

-0.086

Tolerance

5.744

0

-0.859

0.392

1

VIF

1

Conclusion 

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Shows significant impact of customer satisfaction on customer advocacy Higher customer satisfaction gives less negative word of mouth Higher customer dissatisfaction gives more negative word of mouth This study can be conducted in service industries like banks, tourism, safety etc for more customer satisfaction.

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