Effect Of Corporate Governance On The Relationship Between Service Quality And Customer Satisfaction In Nairobi County Hotels

Abstract

The service sector is highly driven by customer satisfaction. Every firm aims at retaining its existing clients rather than losing them. One great contribution of client not returning for the same service could arise when the customer is not satisfied with the quality of the service. This study investigated the effect of corporate governance on the relationship between service quality and customer satisfaction in the hotel industry in Nairobi County. The study specifically addressed how service reliability affects customer’ satisfaction, the relationship between hotel responsiveness and customer satisfaction and how physical environment affected customer satisfaction. Lastly, it sought to find out how corporate governance affected the relationship between service quality and client satisfaction. A predefined statement to formulate hypotheses was formulated from the research objectives as well as research questions were developed to address the key issues on customer satisfaction and service quality. The research employed a cross sectional survey to gather information from 100 stratified randomly selected respondents from the identified hotels in Nairobi county. The study used questionnaire as data collecting tool where the questionnaires were administered personally in the hotels to clients to ensure high authenticity of the information. Descriptive analysis was used to profile the respondents and describe the key constructs in the study. Multiple regression analysis was used to test the research hypotheses and ascertain the predictive power of the service quality dimensions on customer satisfaction. The study established a strong positive relationship between service quality and customer satisfaction. Service quality had three dimensions out of which responsiveness and physical evidence significantly affected customer satisfaction. The moderating effect of corporate governance on the relationship between service quality and client satisfaction was non-significant. The study recommends investing in service quality and formulating policy that will raise hygiene levels in hotels to satisfy customers more.