EXPLORING THE RELATIONSHIP BETWEEN SERVICE QUALITY AND CUSTOMER SATISFACTION IN CROATIAN HOTEL INDUSTRY

Purpose - The purpose of the present study was to examine the relationship between service quality and customer satisfaction. The main objective was to discuss the impact of perceived service quality dimensions on customer satisfaction in the hotel industry in Croatia. Methodology - The data were collected using self-administered questionnaire. The questionnaire consisted of three parts. First, perceived service quality was measured using modified SERVQUAL model. Second, customer satisfaction was operationalized with one variable, representing overall satisfaction measure. Third, demographic variables were included. Questionnaires were distributed to domestic and international hotel guests in the Opatija Riviera (Croatia). Descriptive analysis, factor analysis, reliability analysis, correlation analysis, and multiple regression analysis were performed to analyze the data. Findings - Factor analysis identified four dimensions of perceived service quality, namely reliability, empathy and competence of staff, accessibility and tangibles. Multiple regression analysis showed that reliability, accessibility and tangibles had a significant and positive effect on overall customer satisfaction. On the other hand, empathy and competence of staff positively influenced hotel guests' satisfaction, but this impact was not statistically significant when other dimensions were involved. These results indicate that hotel service quality is indeed a significant predictor of customer satisfaction. Thus, improving hotel service quality, results with higher satisfaction levels of hotel guests. Value/originality - The present study focuses on determining relative importance of perceived hotel service quality dimensions in relation to customer satisfaction, reporting the findings from Croatia. Therefore, it contributes to the existing literature on service quality and customer satisfaction relationship in hotel industry.