Factors Affecting Customer Loyalty A Study of Selected Three Star Hotels in Dodoma City

Abstract

This study investigated factors that influence customer loyalty in specific three-star hotels in Dodoma City, focusing on customer-perceived service value, brand trust, and customer personalization. The research objectives were to analyze the effect of perceived service quality on loyalty, assess the role of brand trust in building customer loyalty, and explore how personalized experiences contributed to hotel customer loyalty. The research approach utilized in this study was a mixed methods research approach, which involved the integration of both qualitative and quantitative methods Data were collected from a sample of 96 hotel guests through structured surveys, and in-depth interviews were conducted with 6 hotel managers and staff members. The study utilized a cross-sectional research design, capturing data at a single point in time to assess the relationship between brand trust and customer loyalty. The research was conducted in a real-world setting, focusing on guests who stayed in three-star hotels in Dodoma City. The key findings revealed that within three-star hotels in Dodoma City, Tanzania, various challenges linked to brand trust significantly affected customer loyalty. Quantitative data were analyzed using descriptive statistics, while qualitative data were thematically analyzed. The study aimed to investigate factors influencing customer loyalty in selected three star hotels in Dodoma City, focusing on customer-perceived service value, brand trust, and customer personalization. The regression output showed that customer personalization significantly influenced customer loyalty (β = 0.844, p < 0.001). These results indicate that personalized experiences play a crucial role in fostering oyalty among hotel patrons, emphasizing the importance of tailored services in building lasting customer relationships. However, customer perceived service value (β = 0.042, p = 0.251) and brand trust (β = 0.094, p = 0.259) did not have significant effects on customer loyalty, suggesting a potential misalignment between customer expectations and hotel offerings. These findings emphasize the need for hotels to invest in personalized guest interactions and training programs that enhance staff abilities to provide customized experiences. Additionally, a concerted effort to improve perceived service value and brand trust is essential to bridge the gap between customer expectations and the hotel's services, ensuring a more comprehensive approach to customer satisfaction and loyalty. This study contributes valuable insights into the nuanced dynamics of customer loyalty, offering practical implications for hotel managers and a nuanced understanding of guest preferences in contemporary hotel settings.