This chapter discusses in detail about the research background,
problem statement, research objectives, research questions, significance of
study and definition of terms. The research background of the study explained
shortly about guest satisfaction and its determinants. For the research
background of the study and research objective, it explained about the problem
that was identified in this study and the purposes of conducting this study. The
significance study explained about the reasons and benefits of conducting this
1.1 Research Background
From comparison between previous 30 years and now, it can be seen
that Malaysia has go through major changes which mean it has been
developed by upgraded environment and facilities in much area. This is
because Malaysia was contributed huge amount of revenue from tourism
industry based on Statistics of Tourist Arrivals and Receipts to Malaysia.
Consequently, it has encourages the growth of a sustainable economy in the
country. For that reason, Malaysia has been decide that the tourism industry is
one of the most significant sectors in Malaysia as it is one of Malaysia's largest
earners of foreign exchange. According to Celuch and D'Onofrio (1993); Fornell
and Westbrook (1984); and Halstead (1989), then, expanded by Nyer, 2000,
the hotel industry have closely connected to the tourism industry. In order to
uphold their success in today's competitive environment in hotel industry, it is
vital for hoteliers to keep hold of their current guests by providing satisfaction to
Figure 1.1: Tourist Arrivals and Receipts to Malaysia
Guest satisfaction is essential to long-term hotel business success and
one of the most frequently researched topics in marketing (Jones and Suh,
2000; Pappu and Quester, 2006).Due to guest satisfaction has been considered
as a fundamental determinant of long-term business success, lots of research
on guest satisfaction looks into its impact on consumers' post consumption
evaluations such as attitudinal and behavioural loyalty toward hotel business
(Cooil, Keiningham, Aksoy, & Hsu, 2007). It is broadly accepted when guests
achieving their satisfaction after stay at hotel, satisfied guests habitually are
less sensitive about price, less influenced by competitors' offer and continue
being loyal to the hotel longer than dissatisfied guests (Dimitriades, 2006).
Nonetheless, the satisfaction does not come directly to guests. Instead, there is
certain determinant that leads to the guest satisfaction. The predictors of guest
satisfaction are perceived quality in the hotel, valuable experiences in term of
perceived value; and safety and security in the hotels which create customers'
trust towards the hotel.
Academic literature has examined many different relationships involving
the construct of satisfaction or factors comprising a more satisfied customer
base across a wide variety of industries (Garbarino and Johnson, 1999;...