CHAPTER I

1.1INTRODUCTION
The development of economic activity always gives influence to marketing aspect.
Corporate management is required to have the right marketing concept to always be able to
overcome the competition in the business world. In general, every company adheres to a
consumer-oriented marketing system, which is a marketing system that always strives to meet
the needs and desires of consumers. In its development the tourism sector plays an important
role in supporting the growth of the national economy because with its existence can
contribute income to the country's foreign exchange, expand employment, and introduce
national culture so it should be developed. If looking at the shape and process or the resulting
product, the tourism industry belongs to the service industry. Liangi states that tourism is like
an industry that produces products, tourism products in the form of services, where tourism is
a set of attributes that include tourist attraction, facility and service objectives, accessibility
and services that customers may receive as one that can satisfy the needs and desires in
gaining experience. Travel Bureau is an important element in customer service process. Most
customers use the services of Travel Bureau . In this case, the Travel Bureau can provide a
complete service to a person or group of people who want to travel both domestically and
abroad. Quality of tourism services is very important influence to be able to measure the level
of customer satisfaction proven through a research (Marketing Research). Consumer
satisfaction will come back by itself when the services that the company sells in accordance
with the wishes of consumers. The perceived quality of service from tourism is said to affect
consumer satisfaction and they always provide the best good for the consumer which
ultimately affects the consumer's intention to return .Consumer satisfaction concerns expected
component and expected performance. The customer's expectation is a customer's estimate or
belief about what he or she receives, whereas perceived performance or results are consumers'
perceptions of what they receive .
Consumer satisfaction as a condition where consumer needs, wants, and expectations can be
met through consumed products. Meanwhile, according to Engel in consumer satisfaction is a
after-sale evaluation where alternatively selected at least give the same results or exceed
customer expectations. Research on the Quality of Service in the field of Tourism is very

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limited and until now there has been no serious effort to critically examine the influence of the
quality of tourism services to consumers .In the tourism industry, they found that service
quality had a positive and significant effect on customer satisfaction. Abu Ali and Howaidee.

1.2INDUSTRY PROFILE
Travel and tourism is the largest service industry globally in terms of gross revenue
and foreign exchange earnings. It is also one of the largest employment generators in
the world. It has been a major social phenomenon and is driven by social, religious,
recreational, knowledge seeking and business interests and motivated by the human urge for
new experience, adventure, education, and entertainment. Tourism is both cause and
consequence of economic development. It has the potential to stimulate other sectors in the
economy owing to cross-synergistic benefits and its backward and forward linkages.

Global scenario
The travel and tourism is one of the fastest growing industries and a leader in many
countries. It is expected to have generated around 9.4% of world GDP and 8.2% of total
employement in 2009 The contribution of the industry to the global econom y
remains high despite a 4.38% decline in 2009. During the year, travel and tourism
investment too declined by more than 12%.International tourist arrivals rose from 682
million in 2001 to 920 million in 2008. The global travel and tourism industry
experienced a downturn in 2009 due to the global economic and financial
meltdown. The industry was affected by low business volumes and
consumer confidence, given the uncertainty about factors such as availability of
credit, exchange rates, employment, and the H1N1 virus. Consequently, tourist
arrivals fell 4% worldwide in 2009. Nevertheless, tourist arrivals increased 2% in the last
quarter of 2009, led by recovery in the Asia Pacific and the Middle East.

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1.3COMPANY PROFILE
Bob and spencer was established on 2011. They provide the best outbound experience
in and around Nilgiris. It is one of the adventure operators specialized in wide varities of tours,
hikes, treks, camping, and adventure activities in Nilgiris. They offer a high quality and
personalized service throughout the stay. It’s a combination of the best travel specialists who
will assist in tailoring the itineraries to suit your interests, abilities and time constraints. We
are qualified to take care of every aspect of your trip. Bob and spencer operates an
international level. A level where planned thinking and creative planning are geared towards
meeting your corporate and program objectives.
The provide various kinds of camping and adventure kinds of activities.

Leisure Camping
Just want to kick back and relax with nature? This is what you are looking for. There
are a variety of camp-sites to choose from of the following activities thrown in.
Camping outdoors
Treks
Stargazing
Water-based sport
Nature Appreciation

Adventure Camping
If testing the limits of tour, mental and physical ability is in the cards, Adventure
camping is what you are looking for. Ideal for groups of 10 and above. Get ready for ultimate
adventure experiences with a variety of activities to choose from.
Camping Outdoors
High rope games
Low rope games
Water games
Team building games
Technical Challenges

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Survival Camping
For nature lovers who love to rough it out in the wilderness, we offer the survival
camping experience. You will learn to survive in the wild with what you have available in
nature. Here are some activities we do:
Managing resources
Camping Outdoors
Facing the elements
Ecological awareness
Leave No Trace” Principle

MISSION
To be the most customer-centric company, where customers can find and discover anything
they might want in and around niligris with the lowest possible prices. We are committed to
dedicate the highest quality of customer services in a sense of warmth, friendliness and
company spirit. Our mission is to deliver what we promise, and only promise what we can
deliver and to create a credible environment where people can enjoy booking with us.

VISION
To be a be a more customer-centric tourism company that best understands and satisfies the
needs of the people visiting niligris by providing the best customer services ever possible.

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1.4 Background of the Study
One of the most effective tools in tourism Industry success is service quality. Juran
(1988) defines quality as “fitness for use” while in Crosby (1979) quality is defined as
“conformance to requirements”. Mitra (2000) on the other hand views quality of a product or
service as “the fitness of that product or service for meeting or exceeding its intended use as
required by the customers”. Considering the tourism industry, bringing about quality has
complication that differs from when tangible product is involved. Parasuraman et al., (1985)
noted that it was inappropriate to use a product-based definition of quality when studying the
service sector. They therefore developed the expression, “service quality”.
Service quality refers to the difference between customers' expectations of service and their
evaluation of the services they received (Parasuraman, Zeithaml, and Berry, 1985). It is
perceived as subjective since it relies on the judgement of the customer. However, it is an
important concept in influencing the extent and nature of customer satisfaction experienced
after service delivery. According to Gronroos (1984); service quality is dependent on two
variables: expected service and perceived service. Expectations are beliefs about the level of
service that will be delivered by a service provider and they are assumed to provide standards
of reference against which the delivered service is compared(Bitner et al,2003).If there is
congruence between the performance and the expectations, then a customer is said to be
satisfied. Various models have been proposed to measure service quality. Lehtinen and
Lehtinen (1982) proposed that service quality can be measured by its physical, corporate and
interactive quality whereas Le Blanc (1992) suggested a variety of factors such as
responsiveness, corporate image and accessibility as some of the factors used to evaluate
service quality. This study focused on service quality and customer satisfaction: a case of
tourism industry in India. The tourism industry is highly service oriented as through the
experiences, customers’ form opinions by comparing the service encounters against their
expectations. The tourism industry India is experiencing increasing competition with major
international tourism brands increasingly setting up is experiencing increasing competition
with major international tourism brands increasingly setting up operations in India.This is set
to increase the competition in the tourism industry. To survive in this dynamic and highly
competitive business environment the tourism operators will be forced to critically
acknowledge the importance of service improvement in order to gain competitive advantage.

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Service Quality
Service quality is defined as customer’s perception of how well a service meets or
exceeds their expectations (Parasuraman, Berry and Zeithmal 1985). Service quality is often
judged by customers and not by the organization itself (Abbasi, Khalid, Azam and Riaz,
2010).Martin (1999) suggested that a service is characterized by attributes such as
intangibility, heterogeneity, perishability and inseparability which delineate a service from a
good which further complicates the evaluation of the performance of a service. This creates
the need for an organization to develop new models or use already existing models to measure
the performance of the services and the perceptions that customers have towards the company.
Parasuramanet al. (1985) mention that if customer’s expectations are superior to the
performance of the service, the service quality is deemed to be unsatisfactory which results in
dissonance on the part of the customer. The service will be considered excellent if perceptions
exceed expectations. Parasuraman, Berry and Zeithmal (1988) developed an instrument, the
SERVQUAL model, which was among the first models used to measure service quality. The
model is based on five factors reliability, responsiveness, assurance, empathy and tangibles.
The SERVQUAL model is built around the gap that exists between the services offered vis-à-
vis the expected service quality as perceived by the customer. Most writers agree that
customers’ expectations are rarely concerned with a single aspect of the service package but
rather with many aspects (Berry et al., 1985). Service quality dimensions are the
characteristics which customers use to evaluate service quality.

Customer Satisfaction
In close connection with service quality is customer satisfaction. Customer satisfaction
is defined as the consumer’s fulfillment response (Oliver, 1997). It is a judgment that a
product or service feature, or the product or service itself, provided (or is providing) a
pleasurable level of consumption-related fulfillment, including levels of under- or over-
fulfillment. According to Williams et al., (2003), customers are satisfied when their judgment
of the service they have received equals or exceed what they expected. If performance
matches, the customer is satisfied and, if it exceeds expectations, even delighted (Kotler et al.,
1996). If the performances fall short of expectations, the customer is dissatisfied. Proper
understanding of the factors that influence customer satisfaction makes it easier for the service

6
provider to design and deliver service offers that correspond to customer demands(Gibson,
2005).
The term service quality and customer satisfaction have been conceptualized similarly in the
literature and therefore might be considered as one evaluative construct (Iacobucci et al;
1995). According to parasuraman et al, (1988), service quality is a global judgment relating to
the superiority of the service, whereas satisfaction is related to a specific transaction. He
concluded that the two construct are related in that incidents of satisfaction over time results in
perception of service quality and therefore the two constructs can be measured by the same
attributes.

Tourism industry in India

The tourism play a central role in the country’s tourism industry, yet the Coast lacks
five-star tourism. According to the Economic Survey (2012), the tourism earnings in India
rose by 32.8% from 73.7 billion in 2010 to 97.9 billion in 2011. Out of these earnings, the
tourism industry’s establishments registered a net worth of over Ksh. 10 billion. The India
tourism and restaurant regulations of 1988 established standards upon which classification of
tourism is based. Internationally, the classification of tourism and restaurants creates
uniformity in the industry providing common elements in every class of tourism and restaurant
that their clients should expect. The tourism business is regulated by two Acts of parliament
namely: Tourism and restaurants Act (Cap 494) and the tourist Licensing Act (Cap 381).

Statement of the Problem

For the tourism industry to achieve its objective of delivering quality service for its
customers, it is imperative to study how the tourism can conceivably meet and even exceed
customers’ service delivery expectations (Doyle, 2000). Management of organizations seeks to
know the level at which the customers are satisfied with their services and the kind of service
quality levels their customers would like in order to offer the exactly what would be taken
positively. Parasuraman et al. (1988) provided a list of five determinants of service quality as a
result of their focus group studies with service providers andcustomers: Reliability,
Responsiveness, Assurance, Empathy and Tangibles.

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 Krishna et al., (2010) after studying service quality and its effect on customer
satisfaction in retailing in India concluded that customers have the highest expectations on
promptness of service, accuracy of transactions and security issues.
Manyi (2011) while studying the relationship between customer satisfaction and service
quality found out that all the five dimensions of service quality were significantly related to
customer satisfaction. The outcome of the study suggested that to satisfy customers,
organizations need to improve dimensions of service quality. These results were consistent
with the findings by Akoko (2012). The researcher, however, pointed out that his research
work targeted only a few service sectors due to time and money constraint and therefore the
study results could not be generalized to other sectors such as the tourism industry.

Value of the Study

The study aims to identify the relationship between service quality and customer
satisfaction a case study of tourism in Nilgiris, India. These findings will lead to a better
understanding of operations and quality dynamics involved in the tourism industry in India
and ultimately lead to customer satisfaction. The findings made from the study are significant
as they will form basis for further research. Scholars and academicians will be able to identify
further areas for research on service quality in tourism in India that will enhance better service
delivery and organizational performance. Academicians will also make references and
deductions from the findings and conclusions of the study since it will provide additional
information to the body of literature in the field of service quality management.

The findings will also provide insights to the management of tourism in re-examining
their services strategy development particularly in the context of increasing customer
satisfaction and service loyalty. It will also provide an insight on the areas that need
improvement, restructuring or general overhaul of the strategies used in service delivery and
organizational performance.

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1.5 REVIEW OF LITERATURE

Introduction
This chapter discusses the theoretical framework and empirical studies related to
service quality and customer satisfaction. In particular, the study covers literature related to the
study as studied by other scholars. The literature is reviewed in two streams. First, literature on
service quality and its measurement is reviewed. Then, literature relating to customer
satisfaction is reviewed. Finally, literature relating to the relationship between service quality
and customer satisfaction is reviewed and a conceptual framework of the study developed.

Some existing studies on the quality of travel services are trying to determine the factors that
affect customers' perceived quality of travel services and to model the differences between
customer expectations and actual service experience (Wen-jung Chen 2013: Premita
Seegoolam (2011) Abede Dires, Mesfin Anteneh (2016) David J. Shonk, M.S. (2006)
Seebaluck, P. Pillai (2006) Al-ababneh (2013) and further determine that there is a need to
conduct research on the travel services business in order to better understand the dimensions
of travel service quality. For research purposes, researchers must consider several common
dimensions and combine them. Visitors are found to be both more attractive and satisfied with
modern and up-to-date tourism facilities and services. (Dires,e an tench 2016)

(Al-Ababneh, M., 2013) findings confirmed that service quality directly impacted tourist
satisfaction throughout destination accessibility, destination facilities, and destination
attraction. Destination accessibility includes the cost, speed and convenience of the public
transport around the tourist destination. Accommodations, restaurants, Café and transportation
service can be categorised in destination facilities, which also includes other facilities in the
tourist destination like retail shop and souvenirs shop and other service like information
service and tourist police. Attraction and environment of destination could motivate tourists to
visit the place, especially places with modern and historic architecture, heritage, culture, art,
and etc.

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(Le-Klahn, D., 2015) observed that tourists were moderately satisfied with the Munich’s
public transport and tourist’s perception more in independent and from most factors. This
study access tourist satisfaction with public transport service in detail. Respondents were
asked to rank their overall satisfaction with specific service aspects. The service aspects were
punctuality, reliability, network connection, service frequency, convenience of the time
schedule, accessibility of the train stations and bus stops, accessibility of the vehicles, safety
on board, ease-of-use, information, cleanliness of the vehicle, space of vehicle, seat
availability, staff service, comfort while waiting at the bus stops and train stations, and ticket
price. Similarly, (Lohmann, G & Pearce, D.G., 2012) , also conducted a study in New Zealand
by conducting interview with 20guests, using five major themes reflected from transport issues
and impact on tourism. They were places and product, sales and marketing, cancellation, speed
restrictions, environmental impacts, and multiple gateways.

Second, some of the researchers used analytic hierarchy process (AHP) to assess the customer
satisfaction in tourism service quality. For example, (Gupta, P. & Srivastava, R., 2011) based
on a survey of customer satisfaction to evaluate hotel service. Thoughts collecting
questionnaire in four major variables in tourism service quality. They were overall service,
reception hall service, room service, and restaurant service. On the other hand, (Ebrahimpour,
A. and Haghkhah, A., 2017), indicated that dimensions like accessibility of accommodation,
venue and their components directly contribute in tourist satisfaction, tourism industries
development in a region intended by tourists return.

Some of the researchers using the systematic review to do further study, (Della, V. and
Sciarelli, M., 2015) measured the tourist satisfaction by reviewing existing field of study and
identified fourteen indicators in their study. There was easy access though different modes of
transportation, accommodation, quality of streets and road-signs, restaurants quality and
diversity, entertainment, price and value, on stage information accessibility, local
transportation, perceived security, disable friendly infrastructure, cleanliness of the city,
hospitable (local) people, organization cultural events, and activities. (Suanmali, S., 2014)
conducted a study with two research methods; one of the methods is documentary research
from literature survey, journals, articles, and some previous research works. Second research

10
method is questionnaire survey conducted among foreign tourists who visited Chiang Mai in
2013. Researcher selected tourists randomly to collect data in temples, heritage sites, and
natural attraction. The questionnaire focuses on five areas, which are hospitality, attraction and
accessibility, cost of staying, environment factor, and infrastructure.
Service Quality
Researchers proposed different views on the definitions of service quality. Service
quality is defined as a comparative function between consumer expectations and actual service
performance (Parasuraman et al., 1985). On the other hand, Parasuraman et al., (1988) defined
service quality as the ability of an organization to meet or exceed customer expectations.
According to Cronin & Taylor (1994), service quality is a form of attitude representing a long-
run overall evaluation of service. As observed by Chang, Chen and Hsu (2002), the traditional
notion of service quality by Parasuraman et al., (1985) is most commonly accepted.

Determinants of Service Quality

When purchasing goods, the customer employs many tangible aspects to judge quality;
style, hardness, color, label, feel and package. However, when purchasing services fewer
tangible aspects exist. In the absence of tangible evidence on which to evaluate quality,
customers must depend on other aspects. Service quality dimensions are the
aspects/characteristics which customers use to evaluate service quality.A research by
Parasuraman et al., (1985) identifies ten determinants that influence customers’ perceptions
of service quality as reliability, responsiveness, tangibility, communication, credibility,
security.

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Ten dimensions of service quality

Dimension Description

Tangibility Physical evidence of service (facilities, tools, equipments

Responsiveness Willingness or readiness to provide service, timeliness

Reliability Getting it right first time, honoring promises, dependability.

Communication Keeping customers informed in a language that they can understand

Credibility Honest, trustworthiness, having customer’s best interest at heart

Security Physical and financial; confidentiality

Competence Possession of the skills and knowledge required to perform the

service

Courtesy Politeness, respect, friendliness, clean and neat appearance.

Understanding Knowing the customer, his needs and requirements.

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Five dimensions of service quality

Dimension Description

Tangibles Physical facilities, equipment and appearance of personnel.

Reliability Ability to perform the promised service dependably and accurately

Responsiveness Willingness to help customers and provide prompt service

Assurance Knowledge and courtesy of employees and their ability to inspire trust and

confidence

Empathy Caring, individualized attention the firm provides its customers.

Source: Adapted from Parasuraman, Zeithml and Berry (1988)

Johnston et al., (1990) tested the comprehensiveness of Parasuraman et al’s (1985)

service quality determinants using management perceptions of service and suggested a
refined list of 12 determinants of service quality as access, appearance/aesthetics,
the fact that the empirical investigation drew only on management perception of service
quality unlike Parasuraman et al., (1988) who used customer data in order to identify the
determinants of service quality.
Gronroos (1990) identified three dimensions of service quality as technical quality of the
service (“what” service is provided), which can be assessed by the customer like the technical
dimensions of a product, functional quality which represent how the service is provided and
the image of the service provider which moderates both technical and functional quality to
arrive at a perceived level of service. He argued that functional quality is an important

13
dimension of perceived service than technical quality because service quality lies in improving
the functional quality of a firm’s service process by managing the staff-customer interaction
and transactional relationships. He observed that a favorable image is an asset for any firm
because it has an impact on customer perception of the operation of the firm.

These authors and many others who have postulated service quality dimensions appear to have
based their work on Parasuraman et al., (1985) and Parasuraman et al., (1988) well publicized
work. For the purpose of this study, therefore, the researcher adopted Parasuraman et al’s
(1988) dimensions of service quality i.e. Reliability, Responsiveness, Access, Empathy and
Tangibles. The five dimensions of service quality developed by Parasuraman, Zeithmal and
Berry (1988) are the most acknowledged and applied in diversity of service industries
(Nathan.D. and Saghier.N. (2013).

Empirical Studies on Service Quality

Different models have been advanced concerning service quality in the service
organizations with an aim of establishing the relationship between service quality and
customer satisfaction. From the earlier research work, Parasuraman et al., (1988), five
determinants of service quality were identified as reliability, responsiveness, assurance
empathy and tangibles. Ten studies carried out using the Servqual questionnaire revealed that
Reliability is the most critical dimension when measuring the relative importance of the five
dimensions followed by Responsiveness, Assurance, Empathy and finally Tangibles
(Parasuraman et al., 1991)
Stromgren(2007) studied the factors influencing service quality in the tourism industry in Peru
and established that the customers were more interested on the dimensions of reliability
exterior, tangibles and assurance. The best predictor of overall service quality was identified as
the dimension of reliability. The researcher however noted that a different context would give
different results. This is due to different social demographic variables such as culture and
religion which might impact on customer expectations Musili (2009) studied the perceived
quality of passenger services provided by the rift valley railway consortium and found out that
courtesy and friendliness of staff, security and driving expertise are the most important
dimensions to the customers.

14
Kiange (2011) investigated managers’ perception of customer expectations in tourism industry
in India. The results showed that assurance, empathy and tangibles were regarded as the most
important factors affecting service quality. This research was however limited to managers’
perception of customer expectations and failed to take into account customer’s expectations.
The result of the study therefore, does not represent the voice of the customer. More study
therefore needs to be carried out to establish whether the manager’s perception of customer
expectations matches customers’ expectations.

Kangogo et al., (2013) studied effect of customer satisfaction on performance of the tourism
industry in the southern tourism circuit of India. The customers reported to be satisfied with
reservation, reception, food quality and beverage quality. Costs, security and tourism
amenities on the other hand registered fair ratings while provision of personalized services
registered dissatisfaction. The researcher also noted that customer satisfaction has positive
impacts on market share, service quality, tourism image, sales turnover, and that lack of
customer satisfaction results in customer and employee turnover.

Customer Satisfaction
Tse&Wilton, (1988) defined customer satisfaction as “the consumer’sresponse to the
evaluation of the perceived discrepancy between prior expectations andthe actual performance
of the product or service as perceived after its consumption”. Woodruff and Gardial,
(1999)defined customer satisfaction as “the evaluative reaction to how particular
productperformed when compared to how he or she anticipated that it would perform”. Kotler
et al., (2002) on the other hand defined Customer satisfaction as the extent to which a
product’s perceived performance matches a buyer’s expectations. Failure to meet these the
expectations leads to expectation

15
Factors affecting Customer Satisfaction
According to Valerie, Zeithaml and Bitner (2005), customer satisfaction is influenced
by a host of issues such as product and service features, customer emotions, perception of
equity and fairness and other customers, family members, friends and co-workers. According
to Tulel et al, 2006, the customer service a brand offers and the fairness of the price it charges
determines the level of satisfaction among its customers than any other measures.
Parasuraman, Zeithml and Berry, 1988 identified 22 factors that influences customer
satisfaction as Physical facilities, Equipment, Appearance of tourism employees,
Communication materials, Timeliness of service, Problem solving interest, Efficient service,
Consistency of service, Accuracy of records, Problem resolution time, Prompt attention to
guest’s requests, Willingness to help, Flexibility of employees, Behavior of employees, Safety
and security, Courtesy of employees, Competence of employees, Individualized attention,
Convenient operating hours, Personal attention from employees, Concern towards guest
interest and Understanding guest specific needs.

Empirical Studies on Customer Satisfaction

Lawrence C. Voss (2006) studied customer satisfaction among tourism in Spain,
Germany and England. The results revealed that many customers were satisfied with the
ability of staff to speak a foreign language, friendliness of staff, condition of premise, room
comfort and the ease of obtaining information. Areas of dissatisfaction includedrespect shown
by staff, ease of contacting a staff member, extra personal attention,multilingual magazines,
international newspaper and TV programs in own language. Onoverall, customer satisfaction
was high in all the tourism.

Mbungwana Christine Lungiswa (2009) conducted a customer satisfaction survey in

tourism in Cape Town. The research identified areas of satisfaction as, wellness/spa
experience, guest entertainment, maintenance of grounds and swimming pool experience.
Areas of dissatisfaction were identified as delivery of luggage, switch board and message
service, attention to special requests and dinner experience.

16
Kangogo et al., (2013) studied effect of customer satisfaction on performance of the tourism
industry in the western tourism circuit of India. The customers reported to be satisfied with
reservation, reception, food quality and beverage quality. Costs, security and tourism
amenities on the other hand registered fair ratings while provision of personalized services
registered dissatisfaction. The researcher also noted that customer satisfaction has positive
impacts on market share, service quality, tourism image, sales turnover, and that lack of
customer satisfaction results in customer and employee turnover. Similarly, Mburu et al.,
(2013) studied the determinants of customer satisfaction in the Indian banking industry. The
customers reported to be satisfied with the accuracy and timeliness of bank statements and
staff understanding of customer needs. Entertainment & refreshment to customers, adequacy
of bank’s networks and readiness of bank staff to respond to customer requests registered
elements of dissatisfaction. He further noted that customer satisfaction can lead to higher rates
of retention of the Indian bank customers.

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Relationship between Service Quality and Customer Satisfaction
Some researchers argue that service quality is an antecedent of customer satisfaction
(Churchill and Suprenant, 1982) while others argues that satisfaction represents an antecedent
of service quality (Carman, 1990; Boltonand Drew, 1991). However, the majority of recent
publications believe that service quality is an antecedent to customer satisfaction (Carrillat et
al., 2007 &Zeithaml et al., 2008).

It is generally accepted that a positive relationship exists between service quality and
customer satisfaction (Bei and Chiao, 2001). Rowley (1998) argues that service quality isan
attitude related to, but not the same, as satisfaction. Parasuraman et al., (1985) in theirstudy,
proposed that when perceived service quality is high, then it will lead to increase in customer
satisfaction. Similar conclusion was reached by Bei and Chiao (2006) and Brady et al., (2005).

After conducting to establish the relationship between customer satisfaction and

service quality, Janet (2011) concluded that a significant relationship between the two existed.
All the dimensions of service quality were identified as the key factors in influencing customer
satisfaction. The outcome of the study suggested that to 21improvecustomer satisfaction,
organizations need to improve the dimensions of service quality.
Akoko (2012) studied service quality dimensions and customer satisfaction in Indian
telecommunications industry and established that all the five service quality dimensions had
positive impact on customer satisfaction. However, reliability dimension was considered to be
having the highest impact while tangibility was considered to have the least impact. He
suggested that all service quality dimensions should be improved and allocated more resources
since they positively affect customer satisfaction. In a study carried out by Musyoka (2013) to
establish whether there exists any relationship between service quality and library user
satisfaction among universities in India, it was established that service quality accounts for
73.9% of user satisfaction. He noted further that reliability dimension contributes most
towards user satisfaction while empathy dimension contributes the least.

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Summary of Literature Review
A review of literature on service quality indicates that the relative importance of the
dimensions of service quality is dependent on the industry in which service quality is being
measured. The review also highlights the need to examine the extent to which the services
provided meets customers’ needs. In the tourism industry, a review of the existing literature
has shown that customer satisfaction is highly depended on service quality (Janet (2011), Harr
(2008) & Krishna et al., (2010).

NEED FOR THE STUDY

Based on the above description, that the previous studies show the influence of
independent variable of quality of tourism service to the dependent variable of satisfaction of
tourists have a significant positive effect, but there is also a negative effect is not significant to
the dependent variable of tourist satisfaction. So the problem that needs to be studied is as
follows
How does accessibility influence to tourist satisfaction?
How does the facility & service affect the satisfaction of tourist?
How does the impact of tourist attraction on tourist satisfaction?
How is the satisfaction of tourists?
Is the quality of tourism services have a positive and significant impact ?

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1.6 OBJECTIVES OF THE STUDY
This study was conducted to examine how and how much influence the quality of
tourism services to the satisfaction of tourists. So the purpose of this research is as follows:
1. To assess customers expectation and perception level towards service quality and customer
satisfaction.
2. To analyze the effect of facilities & services on the satisfaction of tourists.
3. To find different areas that can measure customer satisfaction.
4. To examine the relationship between service quality and customer satisfaction among
tourist in Nilgiris.
5. To analyze whether the customers were satisfied in the destination.

1.7 SCOPE OF THE STUDY

The study indicates promotional activities carried out by bob and spencer that creates
an impact in customer satisfaction and service quality. The study focuses on the customers
satisfaction and service quality .These activities act as a motivating factor in customers’ life .
This study focuses on these promotional activities which are developed by bob and spencer
and the further study in the area of customer satisfaction and service quality.

1.8 LIMITATIONS OF THE STUDY

1) The scope of the study has been confined only to bob and spencer, NILIGRIS.
2) The perpetual bias or attitude of the respondents may also act as hurdles to the study.
3) The size of the sample is limited to 150 only and which may not sufficient to
generalization.
4) Time availed acts as a limiting factor.

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 CHAPTER II
RESEARCH METHODOLOGY

Introduction

This chapter sets out various stages that were followed in completing the study. These
stages are research design, target population, sampling design, data collection instruments,
data collection procedures and data analysis.

2.1Research Design
The researcher applied a descriptive design to study service quality and customer
satisfaction from the customer’s perspective in tourism within Avalenchi Nilgiris. The
research design was chosen because the study was not confined to the collection and
description of the data, but sought to determine the existence of certain relationships among
the research variables. In this study, it was used to establish the relationship between the
determinants of service quality and customer satisfaction among Nilgiris. The studies by
Stromgren (2007), Krishna et al., (2010), Janet (2011), Musyoka (2013), Mburu et al., 2013
adopted this research design and specific research objectives were sufficiently achieved

Object of Research
In this research which will be studied is service quality as independent variable
(independent variable) consist of Destination Attraction, Facilities and Service, Accessibility
and customer satisfaction as dependent variable.

Research Sites
This research was conducted in niligris and surrounding areas. Respondents are tourist
destinations to avalenchi niligris.
Unit of Analysis
This study examines the quality of tourism services to the satisfaction of tourists, the
authors of the analysis will be about the attraction of tourism (Destination Attraction) to the

21
satisfaction of tourists, facilities and services to customer satisfaction, accessibility
(accessibility) to customer satisfaction on tourists Tourist destinations to NILIGRIS.

2.2Population
Total element of the universe from which sample is selected for the purpose of study is
known as population. Population of the desired sampling units is 220 customers.

2.3Sample size
Sample size = 150
A minimum of 150 questionnaires were therefore distributed proportionately among the
respondents from avalanche in Nilgiris .

2.4Sampling Technique
The convenience sampling method was adopted for the study with a sample size of 150
respondents from the consumers. In this a designated number of sample units is selected
deliberately depending upon the objectives so that only the important items representing the
true characteristics of the population are included in the sample.

2.5Data Collection
Primary data was used for this study. The data was collected using a standardized 24
questionnaire. The questionnaire was modified to include a section that was used to measure
factors influencing customer satisfaction. Each of the theory part of the thesis is constructed in
a systematically. The title was review from the representative of the company which means the
nature of the company. After the proposal of the interview to the Bob and spencer in Nilgiris,
the conversation was taken face to face and the answer was noted down on paper. The
discussions are attached in English. In the discussion the question was short and company
easily gave the given question answer. The theory part of the thesis was easy to gather from
the web-books, e-articles and literature. The fast changing nature of the marketing strategy and
inaccurate data makes it harder to find reliable sources of information. The accurate present
data of adventure travelers and the adventure activities is nearly impossible to find. The
competitive marketing management makes it narrower to find the specific information.

22
2.6 Tools used for data collection
The tools used for data collection is questionnaire, interview, survey and case study.
2.7 Data Analysis
This thesis uses on the qualitative research which is mainly focused on the website and
photographs of the Bob and spencer. The main aim of the analysis is to know the current
situation of customer satisfaction in the company in adventure and nature tourism. Besides the
websites and photographs, there were 24 questions related to the customer satisfaction. The
questionnaire is not a quantitative research but it is asked to get the basic information about
the related topic. The aim of the ‘qualitative’ research is used to get expanded information
about a large number of cases that are related to the qualitative research.

2.8 Statistical Tools Used

Analyze the data and interpret the results by using percentage analysis.
 Percentage analysis
 Weighted average

Percentage Analysis

Percentage = Number of respondents X 100

Total no of respondents

Weighted average
∑f(x)/N
f(x)=weight allotted for each factor
N=Number of respondents

23
 CHAPTER III
DATA ANALYSIS AND INTERPRATION

Introduction
This chapter presents the results obtained from data analysis, interpretations and
discussion of findings. The study results are analyzed and interpreted in line with the
objectives which were to determine factors that influence customer satisfaction and to examine
the relationship between service quality and customer satisfaction tourist in Nilgiris, India.

Results
The study targeted the guests of selected rated tourist in Nilgiris. The respondents in
the rated tourism were of different nationalities across the globe. Due to ample time and
accessibility of the tourism the survey yielded a 100% response rate in the research process.
The questionnaires were examined for errors and omissions then used for analysis.

24
3.1 Table showing genders

Sl.no Gender No of Perentage

respondents
1 Male 86 57.34
2 Female 64 42.66
Total 150 100

3.1 Chart showing genders

male
female

Analysis
From the above table the male respondents are 57.36% and female respondents are 42.66%

25
3.2 Table showing martial status

Sl Marrtial status No of Percentage %

no respondents
1 Married 59 39.34
2 Unmarried 91 60.66
Total 150 100

3.2 Chart showing martial status

70

60

50

40

30

20

10

0
married unmarried

Analysis
From the above table 39.34% of them are married and 60.66% are not.

26
3.3 Table showing Educational quailification

Sl Educational qualification No of Percentage

no respondents %
1 SSLC 0
2 UG 78 52
3 PG 64 42.66
4 OTHERS 8 5.34
Total 150 100

3.3 Chart showing Educational qualification

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
sslc ug pg others

Analysis
From the above table it is clear that52% are ug completed amd42.66%are pg completed and
5.34% with other diploma.

27
3.4 Table showing occupation

Sl no Occupation No of Percentage %
respondents
1 Employee 45 30
2 Self employes 22 14.66
3 Business man 65 43.34
4 others 18 12
Total 150 100

3.4 Chart showing

50

45

40

35

30

25

20

15

10

0
empoyee self employ businessman others

Analysis
From the above table 30% are employees and 14.66% are self employees and 43.34% are
business man and 12% are others.

28
3.5 Table showing purpose of visit

Sl Purpose of visit No of Percentage

no respondents %
1 For leisure 126 84
2 Study 2 1.34
3 Recreation 4 2.66
4 Research 18 12
Total 150 100

3.5 Chart showing purpose of visit

90

80

70

60

50

40

30

20

10

0
for leisure study recreation research

Analysis
From the above table it is said that 84% are visit for leisure and 1.34% are for study and 2.66%
are for recreation and 12% are for research.

29
3.6 Table showing people Like to visit with

Sl no People like to visit with No of respondents Percentage %

1 family 25 16.66
2 Friends 77 51.34
3 Group 48 32
4 Individual 0
Total 150 100

3.6 Chart showing people like to visit with

60

50

40

30

20

10

0
family friends group individual

Analysis
From the above table its is clear that most of them are like to visit with their friends about
51.34% and 32% with group and 16.66% like to visit with family.

30
3.7 Table showing RATING OF THE DESTINATION

Sl no Rating of the destination No of respondents Percentage %

1 Excellent 138 92
2 Good 12 8
3 Average 0
4 Poor 0
Total 150 100

3.7 Chart showing RATING OF THE DESTINATION

Analysis
Most of the customers are rated up to92%that the destination is excellent and 8% are said it is
good.

31
3.8 Table showing Like to stay

Sl no like to stay No of Percentage %

respondents
1 Tents 94 62.66
2 Hotels /resorts 43 28.66
3 Tourist village 13 8.68
4 others 0 0
Total 150 100

3.8 Chart showing like to stay

Analysis
From the above table it is clear that most of the costumers are like to stay in tents about
62.66% and 28.66%are like in hotels and resorts and 8.68% are in tourist villages.

32
3.9 Table showing Hydro tourism reference

Sl no Hydro tourism reference No of Percentage %

respondents
1 Yes 102 68
2 No 48 32
Total 150 100

3.9 Chart showing Hydro tourism reference

120

100

80

60

40

20

0
yes no

Analysis
68% of customers are support hydro tourism and 32% are not.

33
3.10 Table showing Like in adventure in water based activities

Sl no Adventure in water based activities No of Percentage %

respondents
1 Yes 97 64.66
2 No 53 35.34
Total 150 100

3.10 Chart showing like in water based activities

water based activities

yes
no

Analysis
From the above table it is Said that adventure tourism in water are more likely to 64.66% and
35.34% are not.

34
3.11 Table showing reference of water based activities

Sl no Reference of water based activities No of Percentage %

respondents
1 Kayaking 83 55.33
2 Canoeing 52 34.67
3 Paddle boating 15 10
Total 150 100

3.11 Chart showing reference of water based activities

water based activities

Kayaking
Canoeing
Padde boating

Analysis
Kayaking is the most supporting water based activity it was support by 55.33% and 34.67%
are like canoeing and 10% like paddle boating.

35
3.12 Table showing SERVICE QUALITY RATING

Sl no SERVICE QUALITY RATING No of Percentage %

respondents
1 Excellent 129 86
2 Good 19 12.66
3 Average 2 1.34
4 Poor 0
Total 150 100

3.12 Chart showing SERVICE QUALITY RATING

Excellent
Good
Average
Poor

Analysis
From the above table it is clear that 86%of customers are rated excellent and 12.66% are rated
good and 1.34%are comment average.

36
3.13 Table showing safety and security measures

Sl no SAFETY AND SECURITY MEASURES No of Percentage %

respondents
1 Excellent 148 98.67
2 Good 2 1.33
3 Average 0 0
4 Poor 0 0
Total 150 100

3.13 Chart showing SAFETY AND SECURITY MEASURES

Excellent
Good
average
poor

Analysis
The safety and security provided by the company are fully satisfied by 98.67% costumers and
1.33% are comment good.

37
3.14 Table showing Environment relation with tourist

Sl no Environment relation with tourist No of Percentage %

respondents
1 Excellent 146 97.34
2 Good 4 2.66
3 Average
4 Poor
Total 150 100

3.14 Chart showing environment relation with tourist

Excellent
Good
Average
poor

Analysis
The environment relation with with the local people is excellent are commented by
97.34%and 2.66% are comment good.

38
3.15 Table showing Fulfillment of promises

Sl no Fulfillment of promises No of Percentage %

respondents
1 Excellent 138 92
2 Good 12 8
3 Average
4 Poor
Total 150 100

3.15 Chart showing fulfillment of promises

140

120

100

80

60

40

20

0
Excellent Good Average poor

Analysis
The fulfillment of promises provided by the company is fully satisfied by 92% and 8% are
good .

39
3.16 Table showing Satisfaction of the facilities

Sl no Satisfaction of the faciities No of Percentage %

respondents
1 Yes 150 100
2 No
Total 150 100

3.16 Chart showing satisfaction of the facilities

yes
no

Analysis

The provided facilities are fully satisfied by 100% of customers.

40
3.17 Table showing rating of transportation facilities

Sl no Rating of transportation facilities No of Percentage %

respondents
1 Excellent 122 81.33
2 Good 27 18
3 Average 1 0.66
4 Poor 0
Total 150 100

3.17 Chart showing rating of transportation facilities

140

120

100

80

60

40

20

0
EXCEllENT GOOD AVERAGE POOR

Analysis
The provided transportation facilities are satisfied by 81.33% of costumers and good to 18% of
customers 0.66% are not satisfied.

41
3.18 Table showing Efficiency of services

Sl no Efficiency of services No of Percentage %

respondents
1 Excellent 134 89.34
2 Good 15 10
3 Average 1 0.66
4 Poor
Total 150 100

3.18 Chart showing Efficiency of services

140

120

100

80
Series 1
60

40

20

0
EXCEllENT GOOD AVERAGE POOR

Analysis
The provided services are excellent to 89.34% of costumers and good to 10% of customers
and 0.66% are commented average.

42
3.19 Table showing Timeline of services

Sl no Timeline of services No of Percentage %

respondents
1 Excellent 119 80
2 Good 21 14
3 Average 9 6
4 Poor
Total 150 100

3.19 Chart showing Timeline of services

120

100

80

60

40

20

0
EXCEllENT
GOOD
AVERAGE
POOR

Analysis
The provided timeline of services are excellent to 80% of customers and 14%are said it is
good and 6% commented average.

43
3.20 table showing negative impacts

Sl no NEGATIVE IMPACTS No of Percentage

respondents %
1 Yes 0 0
2 No 150 100
Total 150 100

3.20 Chart showing NEGATIVE IMPACTS

160

140

120

100

80

60

40

20

0
YES NO

Analysis
There are no negative impacts to the customers in this destination 100% are said no to the
question.

44
3.21 Table showing rank analysis of service quality by the organization

OPTIONS 4 3 2 1 WEIGHTED RANK

AVERAGE

120 10 15 5
3.6333 1
EXCELLENT 480 30 30 5
80 10 10 50 2
2.866
GOOD
320 30 30 50
60 10 10 70 1.6
4
AVERAGE
120 30 20 70
POOR 30 20 20 80 2 3
120 60 40 80

Interpretation
From the table inform that analysis for service quality ie, rank first with weighted average3.6333 is
excellent and second with weighted average 2.866 is good. Third with 2, and last fourth rank with1.6
is poor.

45
 CHAPTER IV
RESULTS

Introduction
This chapter is the synthesis of the entire study and presents a summary of findings,
conclusions drawn therefore and recommendations.

4.1Findings
 The study reveals that 40% of the respondents are male.
 The study reveals that 60.66% respondents are unmarried.
 The study reveals that 84% of the respondents visit the destination for leisure purpose.
 The study reveals that 92% of the respondents rate the destination as excellent.
 The study reveals that 63% of the respondents prefer staying in tents and 28% prefer in
hotels and resorts.
 The study reveals that 68% most of the respondents prefer hydro tourism.
 The study reveals that 65% of the respondents prefer adventure in water based
activities.
 The study reveals that 86% of the respondents rate the service quality are excellent.
 The study reveals that 99% of the respondents are happy with the safety and security
measures.
 The study reveals that 80% of the respondents are happy with timeline of service.
 The study reveals that 97.34% of the respondents rate the environment relation with
tourist are excellent.
 he study reveals that 92% of the respondents are happy with fulfilment of promises.
 The study reveals that 89.34% of respondents are happy with efficiency of services.
 The study reveals that 55.33% prefer kayaking as water based activities in this
destination.
 The study reveals that the provided facilities are fully satisfied by 100% of the
customers.
 The study reveals that 81.33% of the respondents are happy with the transportation
facilities.

46
4.2 SUGGESTIONS

 The tourism should also enhance the five dimensions of service quality due to their
positive impact on customer satisfaction.
 When allocating resources, reliability dimension should be given more allocation since
it has the highest impact on customer satisfaction.
 Similarly, the status of communication materials should also be emphasized since it’s
the main factor influencing customer satisfaction.
 Give your website global reach.
 Optimize your website for your mobile use.
 Improve road conditions.

47
4.3 Conclusion
This study set out to determine the factors influencing customer satisfaction and the
relationship between service quality and customer satisfaction. Of these factors, were
identified as communication material, timeliness of service, willingness to help, status of
tourism equipment, Problem solving interest and status of physical facilities. This implies that
the tourism can improve the level of customer satisfaction by committing more resources
towards improving the factors with the highest impact.
The results also show that the service quality dimensions have different impact in influencing
customer satisfaction. Reliability dimension was found to have the highest impact followed by
Empathy and Tangible. Responsiveness and Assurance were seen to influence customer
satisfaction the least. However, all the five dimensions were highly rated and it was concluded
that the rated Tourism offers high quality of services in all the five major areas.

48
BIBLIOGRAPHY
 Kangogo et al., (2013) effect of customer satisfaction on performance of the tourism
industry in the tourism circuit of India.
 Consumer expectations and actual service performance (Parasuraman et al., 1985)
 Stromgren(2007) factors influencing service quality in the tourism industry.
 Gronroos (1990) three dimensions of service quality as technical quality of the
service.
 Articles from Economic Times;
Webliography
 www.tamilnadutoursim.com
 www.google.com
 www.scribd.com

49
 APPENDICES
Appendix 1: Definitions of the 18 determinants of service quality.

Determinant Description

Access The physical approachability of service location, including the ease of

finding one’s way around the service environment.

Aesthetics Extent to which the components of the service package are agreeable
or pleasing to the customer, including both the appearance and the
ambience of the service environment, the appearance and presentation
of service facilities, goods and staff.

Attentiveness/ The extent to which the service, particularly of contact staff, either
helpfulness provides help to the customer or gives the impression of interest in the
customer and shows a willingness to serve.

Availability The availability of service facilities, staff and goods to the customer. I

Care The concern, consideration, sympathy and patience shown to the

customer.

Cleanliness/ The cleanliness, neat and tidy appearance of the tangible components
tidiness of the service package, including the service environment, facilities,
goods and contact staff.

Comfort The physical comfort of the service environment and facilities

Commitment Staff’s apparent commitment to their work, including the pride and
satisfaction they apparently take in their job, their diligence and
thoroughness.

Communication The ability of the service providers to communicate with the customer
in a way he or she will understand.

50
Courtesy The politeness, respect and propriety shown by the service, usually
contact staff, in dealing with the customer and his or her property.

Friendliness The warmth and personal approachability of the service providers,

particularly of contact staff, including cheerful attitude and the ability
to make the customer feel welcome.

Functionality The serviceability and fitness for purpose or “product quality” of

service facilities and goods.

Integrity The honesty, justice, fairness and trust with which customers are
treated by the service organization

Reliability The reliability and consistency of performance of service facilities,

goods and staff.

Responsiveness Speed and timeliness of service delivery.

Security Personal safety of the customer and his or her possessions while
participating in or benefiting from the service process.

Source: Johnston and Silvestro (1990)

51
Questionnaires in regarding with customer satisfaction

Name of Individual : ………………………………

1. Address : ………………………………
…………………………………………………………….

2. Sex
i) Male [ ] ii] Female [ ]

3. Age
i]Below 20 year [ ] ii] 21 to 30 year [ ]
iii]31 to 40 year [ ] iv] 41 year and Above [ ]

4. Marital Status
i] Married [ ] ii] Unmarried [ ]

5. Education Qualification

i)PU/S.S.L.C [ ] ii) Degree [ ]

iii) PG [ ] iv) Other specify…………

6. Occupation
i ] Employee [ ] ii] Self – Employ [ ]
iii] Business man [ ] iv] other [ ]

8.Have you visited any other water based tourist destinations?

i] Yes [ ] ii] No [ ]

9. Purpose of your visit?

i] For leisure [ ] ii] Study [ ]

iii] Recreation [ ] iv] Research [ ]

10. Do you like to visit with?

52
 i) Family [ ] ii) Friends [ ]
ii) Group [ ] iv) Individual [ ]

11. How do you rate this Destination?

i) Excellent [ ] ii) Good [ ]
iii)Average [ ] iv) Poor [ ]

12 Where would you like to stay?

i) Tents [ ] ii) Hotel/resort [ ]

ii) Tourist villa [ ] iv) If other specify
……………..

13 Do you prefer hydro tourism [water based tourist activities] in this destination?

i) Yes [ ] ii) No [ ]

14. Do you like Adventure in water based activities?

i] Yes [ ] ii] No [ ]

15. If yes, what type of water based activities you like in this destination?

i) kayaking [ ]
ii) canoeing [ ]
iii) paddle boating [ ]

16. How would you rate the service quality rendered by our organization?
i)Excellent [ ] ii)Good [ ]
iii)Average [ ] iv)Poor [ ]

17.Rate the Safety and Security measures which are available at the destination?
i) Excellent [ ] ii] Good [ ]
iii) average [ ] iv) poor [ ]
18. Rate the environment co-operation with tourist?
i) Excellent [ ] ii] Good [ ]

53
 iii) average [ ] iv) poor [ ]
19. Rate the fulfillment of promises in this destination by our organization?
i) Excellent [ ] ii] Good [ ]
iii) average [ ] iv) poor [ ]
20 Are you satisfied by available facilities?
i] Yes [ ] ii] No [ ]
21Rate the local transportation availabilities?
i) Excellent [ ] ii] Good [ ]
iii) average [ ] iv) poor [ ]
22.Rate the timeline of service in our organization?
i) Excellent [ ] ii] Good [ ]
iii) average [ ] iv) poor [ ]

23.Rate the efficiency of services in our organization?

i) Excellent [ ] ii] Good [ ]
iii) average [ ] iv) poor [ ]

24.If any suggestion please mention

………………………………………………………………….
………………………………………………………………….
………………………………………………………………….
Thank you

54