Impact Of Customer Experience Management On Customer Loyalty: A Case Of Small-Scale Hotels In Masvingo

Abstract

This study sought to establish the impact of customer experience management on customer loyalty in small-scale hotels in Masvingo. The study also sought to evaluate three key factors which are physical environment management, virtual environment management, and service interaction management, and their impact to customer loyalty specifically in small-scale hotels in Masvingo. Although a number of prior studies were done in line with the relationship between customer experience management on customer loyalty in the hotel industry, it appears as if not much has been done in the Zimbabwean hotel industry except for the studies by Dube and Chari and a few others whose scopes needed further interrogation. A sample size of 500 respondents was used for this study. The service dominant logic model and the expectancy disconfirmation theories were used in this study. A quantitative research method was used for this study. The research in this study adopts a positivist philosophy, utilizing a deductive research approach and employing a quantitative research methodology. The chosen research strategy involves the use of a self-administered survey to collect data. The stratified sampling design was used. 500 questionnaires were successfully completed and returned. A descriptive case study design was used. Data analysis was done using descriptive statistics such as regression, ANOVA, means, and standard deviation and Chi-Square Analysis. The results indicated that the management of the physical environment has a significant influence on customer loyalty, but it has not been fully implemented in the selected hotels. The virtual environment management, including websites, online communication, reservation systems, and social media presence, was found to be below satisfactory levels, negatively affecting customer loyalty. Service interaction management, encompassing friendliness, helpfulness, promptness, and efficiency, also had an impact on customer loyalty, although it was considered the least important factor. This study therefore concluded that small-scale hotels in Masvingo have poor customer experience management, which significantly affects customer loyalty, and that multiple factors influence customer loyalty in the context of small-scale hotels in Masvingo, and addressing these factors is vital for retaining guests and improving customer loyalty. In light of this, it was therefore recommended that institutions of higher learning and tertiary education institute sound reward systems in order to create job satisfaction.