CHAPTER 4

DATA ANALYSIS

4.0

Introduction

This chapter discusses the analysis of the data collected through questionnaires
distribution at First World Hotel, Genting. Statistical Package for Social Sciences (SPSS) version
13.0 software was used to analyze the data. This chapter was divided into 7 sections. The first
section presents the respondents rate. Second, it will discuss the profile of respondents using
frequency and percentage. Third, it will discuss the validity test of the research and it will follow
with reliability test of the research in the next section. Fifth, it will use mean and standard
deviation to determine the level of service quality of First World Hotel. Sixth, it will use Multiple
Regression to identify the most dominant predictor to examine the service quality of First World
Hotel. Finally, Pearson Correlation analysis is used to examine the relationship between the
hotel's service quality and consumer's behavioral intention towards the First World Hotel.

4.1

Response Rate

379 sets questionnaires had been distributed to customers of First World Hotel,
Genting. However, only 136 sets of questionnaires were successful collected and 23 out of 136
sets were considered unusable due to incomplete data. This data will used toanalyze to obtain
accurate answer and information for research Objectives. The respondent rate in this research
was 35.88 percent.

4.2 Demographic Data

This section shows the demographic data of the respondents. The demographic
data included gender, age, race, occupation, and frequency of staying at First World Hotel. All
the statistical analyses were in the form of frequency and percentage. The demographic data of
respondents were showed in the Table 4.1.

Table 4.1: Frequency Distribution of Demographic Data

Demographic
Gender

Group
Male
Female

Frequency
52
61

Percentage (%)
46.0
54.0

Age

Below 20 Years Old

20 35 Years Old
36 50 Years Old
Above 50 Years Old
20 35 Years Old

9
44
35
25
44

8.0
38.9
31
22.1
38.9

Race

Malay
Indian
Chinese
Others

25
19
56 I
13

22.1
16.8
49.6
11.5

Occupation

Frequency

Private Staff
Housewife
Student
Business
Retiring
Professional
Government Sector
Others
of Once per week

13
12
40
16
9
14
7I
2

11.5
10.6
35.4
14.2
8.0
12.4
6.2
1.8

0.9

1
2
0
63

0.9
1.8
0.0
55.8

staying
Once per month
Twice per month
A few times per month
A few flaws per year
(Source: Research 2009)

As showed in Table CI, more than half of the respondents were female who
contributed 61 respondents or 54.0% of the total respondents. Only 52 respondents or 46.0%
were male. Majority of the respondents' age were between 20 35 years old. Out of 113
respondents, 44 respondents or 38.9% were in this range. It was followed by the age of between
36 50 years! old and above 50 years old that contributed 35 respondents or 31.0% and 25
respondents, or 22.1% respectively. Lastly is the age in the range of below 20 years old which
contributed 9 respondents or 8.0%.

Meanwhile, among 113 respondents, majority of the respondents were come from
Chinese which contributed 56 respondents or 49.6% of total respondents. It was followed by
Malay and India. that contributed 25 respondents or 22.1% and 19 respondents or 16.8% of total
respondents respectively. The fewest categories of respondents were collected from other races
that contributed 13 respondents or 11.5%.

According to Table 41, most of the respondents (35.4%) were students. This was
followed by the respondents worked as business (14.2%), professional (12.4%), private staff

(11.5%), and 10.6% of the respondents were housewife. The rest of the respondents were
retiring, and worked at government sector, accounted for 8.0% and 6.2% respectively. Only 2%
of the respondents choose others as their occupation.

Out of 113 respondents, more than half of the respondents (55.8%) had chosen a
few times per year as the frequency stayed at First World Hotel. Besides, 40.7% of the
respondents were chosen others as their frequency stayed. The rest of the respondents
55who choose once per week, once per month, and twice per month, accounted for 0.9%,
0.9%, and 1.8% respectively.

4.3

Validity Test and Factor Analysis

Factor Analysis with Varimax Rotation and Principal Component Analysis were
used to identify the underlying that was associated with the service quality of First World Hotel.
Principal Component Factor Analysis was performed on 27 variables which were contained in
Section B of the questionnaires. Items value that lower than 0.5 were removed (Amran, 2006).

Before conducting the factor analysis, the validity of data for factor analysis is
examined with the help of Kaiser-Meyer-Olkin Measure of Sampling Adequacy and Bartletts's
test of Sphericity. Both these tests confirmed the validity of the data for factor analysis. Factor
analysis was suitable to be used when the Kaiser-Meyer-Olkin Measure of Sampling Adequacy
was more than 0.7 and Bartletts's test of Sphericity was significant.

Table 4.2: KMO and Bartlett's Test of This Research

Kaiser-Meyer-Olkin Measure of Sampling Adequacy

Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.
(Source: Research 2009)

.894
1879.413
351
.000

According to Table 4.2, in this research, the Kaiser-Meyer-Olkin Measure of

Sampling Adequacy test was 0.894 and Bartlett's Test of Sphericity was significant (Bartlett's
Test of Sphericity = 1879.413, Sig = 0.000). The result indicated that the datawas appropriate for
factor analysis.

According to Table 4.3, the dimensions with Eigenvalue more than one were
selected. The Varimax Rotation procedures produced 6 dimensions that explained 67.925% of
the variance. The 6 dimensions were recovery, knowledge, tangibles, accessibility and flexibility,
responsiveness, and reliability and trust.

Table 4.3: Total Variance Explained

Componen

Initial Eigenvalues

Rotation

t
Total

Sums

of

Squared

Loadings
%

of Cumulative
Total
v

of Cumulative %
v

e
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

12.096
44.801
1.519
5.625
1.343
4.976
1.240
4.593
1.119
4.144
1.022
3.786
0.841
3.116
0.794
2.941
0.730
2.705
0.655
2.426
0.592
2.194
0.572
2.118
0.527
1.951
0.492
1.822
0.461
1.709
0.407
1.509
0.361
1.336
0.342
1.267
0.309
1.145
0.286
1.058
0.262
0.971
0.222
0.822
0.205
0.758
0.199
0.737
0.177
0.654
0.138
0.511
0.089
0.328
(Source: Research 2009)

e
44.801
50.426
55.402
59.995
64.139
67.925
71.041
73.982
76.687
79.113
81.307
83.425
85.376
87.198'
88.906
90.415
91.751
93.018
94.162
95.220
96.191
97.013
97.771
98.507
99.161
99.672
100.000

3.630
3.434
3.247
3.191
3.022
1.817

13.443
12.719
12.026
11.817
11.192
6.728

13.443
26.162
18.188
50.005
61.197
67.925

According to Table 4.4, items with factor loadings more than 0.5 were
selected.There were 25 items selected. Only one item was removed due td the factor loadings
wasless than 0.5. It indicated that item-21 was not significant in determining the servicequality of
First World Hotel. Meanwhile, the 6 dimensions had been modified to suit thenew items
arrangement.

Table 4.4: Rotated Component Matrix

Items

Dimensions
1
2

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

0.762
0.195
0.731
.244 .
0.726
0.107
0.708
0.252
0.549
0.178
0.287
0.701
0.231
0.682
0.270
0.675
0.033
0.66
0.068
0.634
0.318
0.139
0.392
0.260
0.169
0.324
0.171
0.206
0.055
0.204
0.285
0.409
0.109
0.308
0.222
0.084
0.259
0.194
0.189
0.090
0.169
0.276
0.206
0.013
0.236
0.150
0.283
0.368
0.327
0.303
0.307
0.212
0.039
0.124
(Source: Research 2009)

0.242
0.106
0.326
0.070
0.489
0.134
0.251
0.188
0.180
0.188
0.098
0.620
0.561
0.557
0.542
0.532
0.019
0.190
0.233
0.247
0.421
0.345
0.161
0.177
0.139
-0.103
0.342

0.224
0.247
0.112
0.258
0.145
0.125
0.218
0.199
0.159
0.216
0.362
0.243
0.381
0.397
0.248
0.039
0.740
0.736
0.658
0.577
0.460
0.052
0.252
0.266
0.354
0.119
0.161

I0.116
10.174
I0.220
10.382
10.122
!0.269
1 0.118
1-0.071
I 0.380
1 0.173
-0.002
0.195
0.068
0.192
0.451
0.122
0.221
0.126
0.069
0253
0.305
0.742
0.711
0.675
0.531
0.132
0.191

0.170
0.077
0.038
0.044
0.222
0.011
0.136
0.081
0.172
0.459
0.318
0.077
0.298
0.011
0.026
0.326
-0.103
0.281
0.115
0.189
0.137
0.240
0.139
0.053
0.167
0.711
0.702

Table 4.5: ForImer Items of Each Dimension in SERVPERF

Dimensions
Tangibles
Responsiveness
Knowledge
Reliability and Trust
Accessibility and Flexibility
Recovery
(Source: Research 2009)

Number of Items
5
6
4
4
4
4

Items
Item 1 to Item 5
Item 6 to Item 11
Item 12 to Item 15
Item 16 to Item 19
Item 20 to Item 23
Item 24 to Item 27

Table 4.6: New Item for Each Dimension of the Research

Dimensions
Recovery
Knowledge

Number of Items
5
5

Tangibles
6
Accessibility and Flexibility 4
Responsiveness
Reliability and Trust
(Source: Research 2009) '

4
2

Items
Item 23 to Item 27
Item 12 to Item 14,
Item16 to Item 17
Item 1 to Item 5, Item 15
Item 9, Item 20 to Item
22
Item 6 to Item 8, Item 11
Item 18 to Item 19

Table 4.5 and Table 46 indicated that the different between former items in
SERVPERF and new items used in this research. The 6 dimensions extracted from factor
analysis were recovery, knowledge, tangibles, accessibility and flexibility, responsiveness, and
reliability and trust.

The first dimension was modified as recovery. It consists of 5 items which

wereitem-23 to item-27. This dimension explained 44.801% of the variance. Item-24 to item-27
was the former item of this dimension in SERVPERF. Only item-23 was the new itemadded into
this new dimension. Although the disabled guests was not much in First World Hotel but
respondents believe that it should quickly treated when needed. Prior service to disabled guests
was important and needed.

The second dimension was modified as knowledge and this dimension explained
about 5.625% of the variance. It consists of 5 items which were item-12 to item-14 and item-16
to item-17. Item 12 to item-14 were the former items in SERVPERF. Item-16 and item-17 was
the additional item in this research. In this research, respondents assumed that the employees
provide error-free records and accurately verify the reservation requests were heavily depends on
their knowledge and experience. Thus, item-16 and item-17 was added into this dimension.

The third dimension was modified as tangibles and explained 4.976% of the
variance. This dimension consists of 6 items which were item-I to item-5 and item-15.Item-1 to
item-5 was the former items in SERVPERF. In this research, respondents assumed that the
employees aware of group rates and special rates were a tangibles product or service to them.
Therefore, item-15 was added into this dimension.

The fourth dimension was modified as accessibility and flexibility. It consists of 4

items which were item-9 and item-20 to item-22. This dimension explained 4.593% of the
variance. Item-20 to item-22 was the former items in SERVPERF. Item-9 was the additional item
in this research. Respondents assumed that the room maintenance should always fulfill
customers' needs and user-friendliness.

The fifth dimension was modified as responsiveness and explained 4.144% of the
variance. This dimension consists of 4 items. All of the items in this new dimension were come
from the former items in SERVPERF. The last dimension of this research that extracted from
factor analysis was reliability and trust. This dimensions explained 3.786% variance. It consists
of 2 items and all the items were come from the former items1in SERVPERF.

4.4

Reliability Test

The Cronbach's alpha reliability test was used to indicate the reliable measures
where the values were computed to test the new items arrangements for the 6 dimensions
resulted from factor analysis. According to Table 4.7, the alpha value for all dimensions was
0.891. All dimensions for reliability level were around 0.464 to 0.886. The alphavalue for the

new 6 dimensions was recovery (0.886), knowledge (0.845), tangibles (0.864), accessibility and
flexibility (0.794), responsiveness (0.856), and reliability and trust (0.464). Hair et al. (1998)
suggested that reliability estimates between 0.6 and 0.7 represent the lower limit of acceptability
for reliability estimates. In this research, it was recommended alpha value greater than 0.7 was
reliably to measuring respective constructs. Therefore, the reliability and trust was deleted as the
alpha value lower than(Rasli, 2006). As a result, it was indicated that the rest of the dimensions
were reliable and suitable to determine the service quality of First World Hotel. In conclusion,
only five dimensions used to analysis in this research.

Table 4.7: Reliability Coefficients

No.
1
2
3
4
5
6
Total

Dimension
Recovery
Knowledge
Tangibles
Accessibility and Flexibility
Responsiveness
Reliability and Trust

Cronbach's Alpha
0.886
0.845
0.864
0.794
0.856
0.464
0.891

(Source: Research 2009)

4.5

Determine Customers' Perceived Service Quality of the First World Hotel, Genting

The mean and standard deviation will be determined after the factor analysis is
performed. In this research, mean and standard deviation us d to measure the level of service
quality of First World Hotel. Table 4.8 showed the level of customers' perceived service quality
of First World Hotel based on the new dimensions after reliability test.

Table 4.8: Level of Customers' Perceived Service Quality of First World Hotel
Dimension Mean

Standard

Level of Customers' Perceived

Recovery 4.4867
Knowledge4.6673
Tangibles 4.5015
Accessibility
4.6460

Deviation
1.00849
0.80206
0.89073
0.84299

Service Quality of First World Hotel

High
High
High
High

0.92022
0.75270

High
High

and
Flexibilit
y
Responsiveness
4.4447
Average Mean
4.5492
Score
(Source: Research 2009)

According to Table 4.8, generally, respondents had a high level of perceived

service quality in term of recovery dimension which result MI mean value of 4.4867 and
standard deviation of 1.00849. This dimension refers to the ability to provide appropriate.
Information and take corrective actions to customers when something goes wrong or something
unexpected happens. At First World Hotel, special services for disabled guests are always
available at any time. The employees are quickly apologize when service mistake are made and
empowered to provide compensations for inaccurate service.

Besides, smoking rooms are tilted to accommodate non-smoking guests when

needed. Lastly, information on alterative lodging is provided to customers when the hotel is full.

The knowledge dimension for customers' perceived service quality of First World
Hotel was in the high level of customers' perceived value which mean value was 4.6673 and
standard deviation was 0.80206. This dimension refers to the knowledge and competence of
service providers, possession of necessary skills on themselves. The employees of First World
Hotel have knowledge or familiar with the hotel procedures. Besides, the employees always
provide adequate information about hotel activities/facilities and are IcnoWledgeable about the
hotel equipment such as computer system and exercise facilities. The employees have the ability
in providing error-freerecords andaccurately verify customers' reservation requests.

The third dimension of customers' perceived service quality of First World Hotel
was tangibles. Respondents had a high perception on this dimension (mean = 4.5015, standard
deviation = 0.89073)1 This dimension includes the physical facilities, equipment, appearance of
staffs and taste of food and beverages served at restaurants in First World Hotel. The hotel and
restaurant is clean. Further, the exterior and interior design of the hotel is attractive. Besides, the
employees are neat-appearing and hotel's facilities are up-to-date and fulfill customer' needs. The
food and beverage served at restaurant are tasty. Lastly, the employees are aware of group rates
and special rates that provide by First World Hotel. This can results in saving money for
customers.

The fourth dimension of customers' perceived service quality of First World Hotel
was accessibility and flexibility. The mean value of this dimension was 4.6460 and standard
deviation was 0.84299. Respondents had a high perception on this dimension. This dimension
indicate the service provider's ability, through its location, operating hours, employees and
operational systems, to design and deliver the service to be capable to adjust to the demands and
wishes of customers in a flexible way. The room maintenance always fulfills the customers'
needs. Location of First World Hotel is strategic. Besides, the employees are easily accessible
when needed. In addition, the hotel provides express check in and checkout for guests.

The last dimension of customers' perceived service quality of First World Hotel
was responsiveness. This dimension was in the high level of customers' perceived value which
mean value was 4.4447 and standard deviation was 0.92022. This dimension refers to the
willingness of employees or professionals to provide dependable or professional service. The
employees are helpfulness/courteous and provide personal attention to every guest without any
prejudice. Further, the employees are able to adapt well to handle peak customer traffic and able
to handled customer's requests promptly. The quick response to customers' requests is the most
concern by customers.

4.6

Determination of the Most Dominant Predictor in Determining the ServiceQuality

of the First World Hotel

The method of regression technique with significance level of 0.05 is used to

identify the most dominant predictor in explaining the service quality of First World Hotel. The
dimensions which were not significant will be removed based on the significant level of
regression technique. The independent variables were the new 5 dimensions of service quality
which were recovery, knowledge, tangibles, accessibility and flexibility, and responsiveness.
While, the overall question for service quality provided by First World Hotel was dependent
variable. Below is the model that used in this research:

Y =aX1 +bX2+cX3+dX4+ eX5+ e

Where,
Y = Service Quality of Hotel
X1 = Recovery

X2= Knowledge
X3= Tangibles
X4= Accessibility and flexibility
X5= Responsiveness
e= Constant

Table 4.9(1): Model Summary of Regression

Model

1
0.808 a
(Source: Research 2009)

R Square

Adjusted R

Std. Error of

0.653

Square
0.637

the Estimate
0.598

Table 4.9(1) showed that the R value of this regression model was 0.808. This
meant that 80.8% of the service quality of First World Hotel (dependent variable) could be
perfectly predicted by the dimensions in terms of recovery, tangibles, and responsiveness.
Besides, the R square was 0.653. The R square showed that 65.3% ofthe variation in the service
quality of First World Hotel was influenced by recovery dimension, tangibles dimension, and
responsiveness dimension.

Table 4.9(2): Result of Multiple Regression Analysis

Model

Unstandardized

Standardized

(Constant)
Recovery
Tangibles
Responsivenes

Coefficients
B
0.128
0.332
0.246
0.332

Coefficients
Beta
0.350
0.338
0.221
0.308

Std. Error
0.368
0.086
0.109
0.095

s
(Source: Research 2009)

Sig.
t
0.727
3.867
2.263
3.491 1

(Constant)
0.000
0.026
0.001

According to Table 4.9(2), there were 3 dominant predictors in explaining the

service quality of First World Hotel. The predictors were recovery, tangibles, and responsiveness.
Both of the recovery dimensions and responsiveness dimensions obtained the highest
unstandardized coefficients beta value which was 0.332 respectively. It was followed by
tangibles dimension (0.246). Based on the Table 4.9(2), dimension of recovery (t = 3.867, Sig. =
0.000), tangibles (t = 2.263, Sig. = 0.026), and responsiveness (t = 3.491, Sig. = 0.001) have the
linear relationship with service quality of First World Hotel. Thus, in can be concluded that the
service quality of First World Hotel can be increased if the dimension of recovery, tangibles, and
responsiveness improved. Below is the model that used in this research:

Y = 0.332X1 + 0.246X2 + 0.332X3 + 0.128

Where,
Y = Service Quality of First World Hotel
X/ = Recovery X2 =Tangibles X3= Responsiveness
e= Constant

This equation indicated that the dimensions of recovery, tangibles, and

responsiveness were the predictors in explaining the variance in the service quality of First World
Hotel that explained 63.7% of the variance in the service quality of First World Hotel. However,
the beta value in the Table 4.9(2) can b le used to identify the most dominant dimension in
determining the service quality of First World Hotel. Recovery dimension (beta = 0.338) was the
most dominant predictor in explaining the servicequality of First World Hotel.; This indicated
that the increased for every unit of recoverydimension, a 0.338 unit of service quality of First
World Hotel was expected to be increased. The responsiveness dimension (beta = 0.308) was the
second dominantpredictor and tangibles dimension (beta = 0.221) was the third dominant

predictor. This meant that the increased for every unit of responsiveness dimension and tangibles
dimension, a 0.308 and a 0.221 unit of service quality of First World Hotel was predicted
respectively.

4.7

Determine of the Relationship between Customers' Perceived Service

Qualityon Behavioral Intention towards First World Hotel

Table 4.10: Pearson Cori-elation Analysis of the Relationship between Customers'

Perceived Service Quality on Behavioral Intention towards First World Hotel
Service Quality of
Dimension of Behavioral Intention

Service Quality of
First

Word-of-Mouth
Communications
Purchase Intention
Price Sensitivity
Complaining

World

Pearson Correlation
Sig. (2-tailed)

Hotel
0.708**
0.000

Pearson Correlation
Sig. (2-tailed)
Pearson Correlation
Price Sensitivity
Pearson Correlation
Sig. (2-tailed)

0.624**
0.000
0.555**
Pearson Correlation
0.243**
0.010

Behavior
**. Correlation is significant at the 0.01 level (2-tailed).
(Source: Research 2009)

According to the results in Table 4.10, there was a strong relationship (correlation
. coefficient = 0.708) between' the service quality of First World Hotel and word-ofmouth communication. WOIVI communications refer to favorable behavioral intentions that
included elements such as saying positive things and recommending the service to others.

Most of the customers would recommend to others about the positive things of
First World Hotel. Besides, customers would also provide comment on service/product
evaluation of the hotel. Further, customers would always give positive word-ofmouth
information to enhance popularity of the hotel.

Purchase intentions refer to first comes to customer's mind when making a

purchase decision and the service, which was a customer's first choice among alternatives. In this
research, the relationship between the service quality of First World Hotel and purchase
intentions was moderate which correlation coefficient was 0.624. Customers would have high
return intention and high frequency to stay in First World Hotel.
Besides, customers would also choose First World Hotel as first priority.

Price sensitivity refers willingness to paying a price premium to a company.

Based on the result, there was a moderate relationship between the service quality of First World
Hotel and price sensitivity which correlation coefficient was 0.555. Customers perceived to stay
in First World Hotel are value for money and willing to pay higher than other hotel to stay in this
hotel. Besides, switching cost for customers to switch to other hotel is high.

Finally, complaining behavior refer to unfavorable behaviors included

complaining, a multi-faceted concept that included voice responses, private responses and thirdparty responses. Customers' complaining behavior showed the weakest relationship with service
quality of First World Hotel provided with correlation coefficient of 0.243. Since the service
quality provided by First World Hotel was high, customers were rarely complain to other or
direct complain to organization about the negative experience in First World Hotel. Besides,
customers were seldom filling up the feedback form to express their experience at First World

Hotel. The weakest relationship showed that most of the respondents who never facing the
problems of service quality at First World Hotel.