The Effects of Customer Satisfaction and Commitment on Customer Loyalty: Evidence from the Hotel Industry

Abstract

So as to be successful in the business, it is not adequate to attract new customers, hoteliers should focus on maintaining existing customers employing effective strategies of customer commitment, satisfaction and loyalty to maximize their lifetime value. The main goal of this investigation is to demonstrate the vital effects of customer satisfaction and customer commitment on customer loyalty. A field survey of four and five star hotel customers in Jammu and Kashmir, India was conducted using a questionnaire. Simple random sampling technique was used to select the sample. A total of 120 questionnaires were distributed to hotel customers and out of which 112 were returned (93% response rate). The results showed that satisfaction and commitment has positive effects on customer loyalty and also customer satisfaction has a positive effect on commitment. Thus, to generate competitive benefits and increase customer loyalty, hospitality managers may pay more reflection towards satisfaction and commitment to sustain existing customers in developing long lasting relationship with customers in the hotel industry.

Keywords: Customer Loyalty, Commitment, Satisfaction, Hotel Industry

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