Customer Service Effectiveness

Customer service effectiveness plays a vital role for tourism businesses & organizations to gain competitive advantage in the current market (Berry, 1995; Bowen & Schneider, 1988). Satisfied customers tend to return for the same business and will also sometimes make recommendations of the particular business to other people via word-of-mouth (Rucci, Kirn, & Quinn, 1998). Thus from this we know that obtaining a high level of customer satisfaction will provide a huge return on the profit generated. Researches has been done and it shows that customer retention is increasingly profitable for the subsequent years in many industries (Reicheld & Sasser, 1990). This theory should be able to apply for hospitality industry as well as customer retention means the customers have a level of trust and feel comfortable upon returning to the same hotel for the high level of satisfaction they can obtain. Further, exerting efforts to retain current customers is significantly less costly than gaining new customers (Reicheld & Sasser).

Due to the fact that service effectiveness is becoming a more critical organizational objective (Cascio, 1995; Reicheld & Sasser, 1990), it is important to evaluate how the delivery of service differs from

Currently the existing customer satisfaction in relation to guest performance studies can be learnt from two theoretical perspectives: the service profit chain (Heskett et al, 1994) and SERVQUAL, which is now known as the RATER model (Parasuranam, Zeithmal & Berry, 1985). In general, the service profit chain by Heskett shows a positive relationship between staff satisfaction, service quality and ultimately leading to revenue being generated. On the other hand, SERVQUAL also recognizes the significance of how the staff satisfaction and service quality interact with one another as factors of customer