The Impact of Service Quality on Consumer Buying Behaviour with Special Reference to Sri Lankan Hotel Industry

Abstract

As per Sri Lanka Tourism Development Authority, 19 percent of guests chose five star hotels. Out of all the five star hotels in Sri Lanka, Hilton Colombo has been a leading hotel and it had been the market leader. However, the annual reports of Hilton Colombo show the revenue and profit has declined in the recent years. Hence the researcher hypothesized that it may be due to poor service quality. The objectives of the current study are; to study the determinants of service quality, to explore the contributions of consumer buying behaviour and to analyse the relationship between service quality and consumer buying behaviour through customer satisfaction. In the current study, the sample size is 60 customers and the data collection method used is a mixed method. The qualitative analysis was conducted through the case study approach whereas quantitative analysis was done through SPSS Amos (21). The reliability of the current study was 85.5 percent and expert’s review was used to ensure the validity of the study. The model fit of the current study is analysed through CMIN/DF which is 2.422, GFI which is 0.950, PGFI which is 0.170 and RMSEA which is above the standard level of 0.05. Even though RMSEA is high, since all the other model is perfectly fitting the range, the current study can be concluded as the model is fit. Finally, the study concludes that Tangibles, Assurance, Responsiveness and Empathy were found to be positively related to behaviour. Studies done by Parasuraman et al. (1985), Agbor (2011) and Kumar and Barani (2012) have supported the findings of the current study.