*** ABSTRACT Nowadays, “service quality” is mentioned a lot when hoteliers and marketers discuss about how to improve a hotel’s competition capabilities. Many researchers figure out that customer use five dimensions to judge service quality of a hotel – tangibles, reliability, responsiveness, assurance, empathy. The gap between expected and perceived service is a measure of service quality. The fact that hotels and resorts are booming in Vietnam results in an intensive competition among hoteliers. Thus, there is no better way to capture and retain customers than to deliver an excellent service quality. Taking 3 star hotels in Da Nang as a case study, this paper focuses on analyzing the effects of 5 mentioned dimensions that affect customer satisfaction and customer loyalty. The data, collected from 113 questionnaires, was analyzed by statistic methods (hypothesis test, regression), measuring service quality model (SERVQUAL) and tools (SPSS). The results show that dimensions of hotel service quality such as tangibility, assurance and empathy significantly predict customer satisfaction and loyalty. Specifically, among the dimension of service quality, the most significant predictor of customer satisfaction is empathy. For customer loyalty, the research reveals tangibles and assurance are the key predictors, while “tangibles” is more important of the 2 factors. The results recommend that hotel managers should exert more attempt and focus to develop its service quality along these two vital dimensions and improve its weaknesses.
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INTRODUCTION Quality customer service should be a top priority for any enterprise, whethera sole trader or large multi-national company. Even this company who works in the commodity market or service market, the service quality stay an important role in the success of this company. Be different with