Customer Satisfaction: A Structural Equation Modeling Analysis

Abstract

The aim of this paper is to investigate the determinants and consequences of customer satisfaction in hotel industry in Iran. A Confirmatory Factor Analysis (CFA) and Structural Equation Modeling have been utilized with information provided by a survey conducted in Iran (Kish Island).Results indicate that perceived value has a significant impact on customer satisfaction in hotel industry. Moreover, there is an strong positive relationship between image and perceived quality, image and perceived value, and also perceived quality and Perceived value. Based on the Results, no direct relationship has been detected between perceived quality and customer satisfaction, and also between customer expectation and customer satisfaction in hotel industry. In addition, Results showed that increased customer satisfaction will lead to an increase in customer loyalty. However, there is no strong negative relationship between customer satisfaction and complaining behavior. Findings provide more evidence on important determinants and results of customer satisfaction. Moreover this study is among the first studies conducted in hotel industry in Iran-Kish Island.