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BMK024/1505 FACTORS THAT AFFECTING CUSTOMER SATISFACTION AMONG LOCAL TOURISTS TOWARD BUDGET HOTELS IN MALAYSIA BY CHONG YEN TING LIM EE MANG NG CHIANG YAO WONG CHEN SHAU A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF MARKETING (HONS) UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF BUSINESS AND FINANCE DEPARTMENT OF MARKETING APRIL 2016 Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia Copyright @ 2016 ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, graphic, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior consent of the authors. ii Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia DECLARATION We hereby declare that: (1) This undergraduate research project is the end result of our own work and that due acknowledgement has been given in the references to ALL sources of information be they printed, electronic, or personal. (2) No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university, or other institutes of learning. (3) Equal contribution has been made by each group member in completing the research project. (4) The word count of this research report is 10,885 words. Name of Student: Student ID: Signature: 1. Chong Yen Ting 12ABB01475 __________________ 2. Lim Ee Mang 12ABB04615 __________________ 3. Ng Chiang Yao 12ABB04724 __________________ 4. Wong Chen Shau 12ABB02612 __________________ Date: 10 APRIL 2016 iii Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia ACKNOWLEDGEMENT Firstly, we would like to express our sincere gratitude to our advisor Mr.Choy Johnn Yee for the continuous support of our related research, for his patience, motivation, and immense knowledge. He has provided valuable opinions and shared his personal experience throughout the research period. His guidance is absolute essential to the completion of this research. Our sincere thanks also goes to Mr. Jason Teo, for his insightful comments and encouragement on the research for further improvement. We sincerely appreciate the valuable time and attention that he had spent on us. Besides, we would like to thank Universiti Tunku Abdul Rahman (UTAR) for giving us an excellent opportunity to conduct this research project. This research study let us gained a lot of knowledge. Furthermore, we would like to express our appreciation to all the respondents who are willing to spend their valuable time to complete our questionnaire. Without the help from respondents, we would not able to obtain data to finalize our research, which is the critical part of this research project. Last but not least, we would like to appreciate the effort of each and every member in completing this research. We worked hard and being cooperative to complete this Final Year Project. iv Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia DEDICATION This thesis is specially dedicated to: Mr. Choy Johnn Yee, Mr. Jason Teo And Our families, friends, respondents and loved ones, Thanks for your support when we need it the most. v Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia TABLE OF CONTENTS Page Copyright Page ……………………………………………………………………… ii Declaration ………………………………………………………………………… iii Acknowledgement ………………………………………………………………… iv Dedication ………………………………………………………………………….. v Table of Contents ………………………………………………………………..… vi List of Tables ……………………………………………………………………... xii List of Figures ………………………………………………………………......... xiv List of Abbreviations ……………………………………………………………... xv List of Appendices………………………………………………………………... xvi Preface …………………………………………………………………………... xvii Abstract …………………………………………………………………………. xviii CHAPTER 1 RESEARCH OVERVIEW…………………………………………. 1 1.0 Introduction …………………………………………………….. 1 1.1 Research background …………………………………………... 1 1.2 Problems Statement ………..…………………………………... 2 1.3 Research objective……………………………………………… 3 vi Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia 1.3.1 General Research Objective ……………………………… 3 1.3.2 Specific Research Objective ……………………………... 4 1.4 Research Question……………………………………...………. 4 1.5 Hypothesis of Study…………………………………...……….. 5 1.6 Significance of Study…………………………………...………. 5 1.7 Chapter Layout …………………………………………….….…. 7 1.8 Conclusion ………………………………………...…………… 8 CHAPTER 2 LITERATURE REVIEW ….…….………………………………… 9 2.0 Introduction……………………………………………………... 9 2.1 Review of Literature……………………….……………………... 9 2.1.1 Customer Satisfaction…………………………….………. 9 2.1.2 Reliability…..……………………………………………. 10 2.1.3 Assurance………………………………………………... 11 2.1.4 Tangibles………………………………………………… 12 2.1.5 Empathy…………………………………………………. 13 2.1.6 Responsiveness ……………………………………….… 13 2.1.7 Price …………………………………………………….. 14 2.2 Review of Relevant Theoretical Model……………….............. 15 2.3 Proposed Framework…………………….………….................... 16 2.4 Hypotheses Development……………………………………... 17 2.4.1 Reliability…..……………………………………………. 17 2.4.2 Assurance………………………………………………... 17 2.4.3 Tangibles……………………………………………….... 18 2.4.4 Empathy…………………………………………………. 18 vii Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia 2.4.5 Responsiveness …………………………………………. 19 2.4.6 Price …………………………………………………….. 19 2.5 Conclusion ……………………………………………………. 19 CHAPTER 3 RESEARCH METHODOLOGY……………………..………….. 20 3.0 Introduction ……………………………………………..…… 20 3.1 Research Design …………………………………………….. 20 3.2 Data Collection Method……………………………………… 21 3.2.1 Primary Data…………………………………………… 21 3.3 Sampling Design……………………………………………… 21 3.3.1 Target Population………………………………………. 21 3.3.2 Sampling Location and Sampling Frame ……………… 22 3.3.3 Sampling Elements ……………………………………. 22 3.3.4 Sampling Technique …………………………………… 23 3.3.5 Sample Size ……………………………………………. 24 3.4 Research Instrument…………………………………….……. 24 3.4.1 Questionnaire………………………..…………...…….. 24 3.4.2 Questionnaire Design……………………………..……. 24 3.4.3 Pilot Test ………………………………………………. 25 3.4.4 Data Collection …………………………………………26 3.5 Constructs Measurement…………………..…………...…….. 27 3.5.1 Scale Management……………………………………… 27 3.5.1.1 Nominal Scale …………………………………… 27 3.5.1.2 Ordinal Scale……………………………...……… 28 3.5.1.3 Likert Scale…………………………….………… 28 viii Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia 3.6 The Processing of Data ………………………………….…… 29 3.6.1 Data Checking ………………..…..………………….. 29 3.6.2 Data Editing………………………………….………… 30 3.6.3 Data Coding……………….…..……………………….. 30 3.6.4 Data Transcription………………..….……………........ 30 3.6.5 Data Cleaning……………………………….………….. 30 3.7 Data Analysis…………………………………………….…… 31 3.7.1 Descriptive Analysis of Research……….……………… 31 3.7.2 Scale Measurement ……………………………………. 31 3.7.2.1 Reliability test …………………………………… 31 3.7.3 Inferential Analysis of Research………………………. 32 3.7.3.1 Pearson Correlation Analysis ……………………. 32 3.7.3.2 Multiple Regressions ……………………………. 33 3.8 Conclusion …………………………………………………… 34 CHAPTER 4 ANALYSIS OF DATA ………………………………….. 35 4.0 Introduction ………………………………………………….. 35 4.1 Descriptive analysis of research ……………………………… 35 4.1.1 Demographic profile of research respondents …………. 35 4.1.1.1 Gender ……………………………………………. 35 4.1.1.2 Age group ………………………………………… 36 4.1.1.3 Occupation ……………………………………….. 37 4.1.1.4 Monthly Income ……..…………………………… 38 4.1.2 Central Tendencies Measurement of Constructs ………. 39 ix Factors that Affecting Customer Satisfaction among Local Tourists toward Budget Hotels in Malaysia 4.2 Scale measurement of research ………………………………. 46 4.2.1 Test of internal reliability ………………………………. 46 4.3 Inferential analysis of research ……………………………….. 47 4.3.1 Analysis of Pearson Correlation ………………………... 47 4.3.2 Multiple Linear Regression of Research ………………… 48 4.3.2.1 Strength of relationship ……………………………. 48 4.3.2.2 Test of Significant …………………………………. 50 4.4 Conclusion …………………………………………………….. 53 CHAPTER 5 DISCUSSION, CONCLUSION AND IMPLICATIONS ………... 54 5.0 Introduction …………………………………………………… 54 5.1 Summary of Statistical Analyses of Research ………………... 54 5.1.1 Descriptive Analysis ……………………………………. 54 5.1.1.1 Research Respondent’s Demographic Profile ……. 54 5.1.1.2 Summary of Central Tendencies Measurement ….. 55 5.1.2 Scale Measurement of Research ……………………….. 55 5.1.2.1 Test of Reliability ………………………………… 55 5.1.3 Inferential Analyses of Research ………………………. 55 5.1.3.1 Pearson Correlation Coefficient ………………….. 55 5.1.3.2 Multiple Regression Analysis …………………….. 56 5.2 Discussion of Research Major Finding ………………………. 56 5.3 Implications of the Research Study ………………………….. 59 5.3.1 Managerial Implications ……………………………….. 59 5.3.2 Theoretical Implication ………………………………… 61 5.4 Limitations of study ………………………………………….. 61 x

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SATISFACTION AMONG LOCAL TOURISTS. TOWARD BUDGET HOTELS IN MALAYSIA. BY. CHONG YEN TING. LIM EE MANG. NG CHIANG YAO.
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