Assessing the Effects of Customer Satisfaction and Retention in the Hospitality Industry: A Study of St. Jacobs and Groovy Hotels, Akure, Ondo State, Nigeria

Abstract

This study investigated the effect of customer satisfaction and retention in St. Jacobs and Groovy Hotels, Akure, Ondo State. Satisfying customers’ needs allows for keeping them and fostering customer retention, ensuring ongoing patronage. The level of customer satisfaction and retention dictates to some extent the achievement of organizational objectives. Descriptive survey research design was used for this study. This study sample comprised 120 customers and they were selected using convenience sampling technique. The questionnaire was used as an instrument of primary data collection. The data collected were analyzed using descriptive and inferential statistics. Demographic information of the respondents was analyzed using simple percentages and bar charts. Linear Regression Analysis and Pearson Correlation were used to test the three hypotheses that were formulated for this study at 0.05 alpha levels of significance. The results of the findings in hypothesis one concluded that service quality has a positive significant impact on customer satisfaction. Hypothesis two established that customer satisfaction has a positive significant impact on customer retention. In the third hypothesis, it was found that there is a positive significant relationship between customer care, customer satisfaction and customer retention. This study recommended that proper and quick care should be given to customers whenever objections are raised to give them a sense of belonging. Therefore, it would be valuable to investigate other variables, such as food and beverage quality and service, branding, cleanliness and security of hotels about the construct of customer satisfaction.