A Study of the Relationship between Customer Satisfaction and Customer Loyalty toward an Economy Hotel Chain in Guangzhou, China

Abstract

This research aims to examine the main factors affecting customer loyalty and investigate the relationships between customer satisfaction on service quality and price and customer loyalty toward an economy hotel chain in city of Guangzhou, in the Guangdong province, China. Self-administered questionnaires were collected from 402 customers who have stayed in 7 Days hotels and the Pearson correlation employed for data analysis. The results of this study confirmed that service quality dimensions and perceived price are the main drivers of customer satisfaction in terms of affecting customer loyalty. Surprisingly, the findings also show that perceived price has a stronger impact on customer loyalty than any other service quality dimensions.