The Effect of Hotel Service Quality on Customer Satisfaction and  
Implications for Customer Loyalty in Perhentian Island, Terengganu  
Mohd Taufiq Bin Hashim  
Universiti Teknologi MARA  
Received: 26 November 2025; Accepted: 03 December 2025; Published: 11 December 2025  
ACKNOWLEDGEMENT  
First and foremost, gratitude to Allah S.W.T for His blessings and mercy granting me good health and lends me  
some peace of mind and courage in completing this paper.  
I am also grateful for the presence of my supervisor, Assoc. Prof. Dr Rasidah binti Hamid for her patience and  
invaluable guidance, comments and advice towards me in completing this paper. Her constant supervision and  
willingness in dealing with me every meeting really touched me. Things would not go this smooth without her  
dedication towards the completion of this project. She owns a hight amount of knowledge in this field-hence that  
explained well on how well she described about the overview of the hotel and tourism industry. This semester  
is the toughest yet challenging semester ever, the sympathy that she owns can never be beaten. May Allah S.W.T  
showering him with blessings and happiness in each day ahead.  
I would like to express my gratitude and many thanks to my beloved parents, Mrs. Halimah binti Mahmood for  
their endless supports and motivation throughout the journey in completing my master. To my beloved siblings,  
many thanks for always have faith in me.  
I would like to dedicate my special thanks to my friends for helping and giving me motivation to complete this  
thesis and always give encouragement and staying at my side through thick and thin since forever. May Allah  
S.W.T repay for their kindness.  
Thank you.  
ABSTRACT  
The primary goal of this research is to determine the effect of hotel service quality on customer satisfaction and  
implications for customer loyalty in Perhentian Island, Terengganu. Having satisfied and loyal customers are  
one of the necessary actions in a business company to remain in business. The literature has been researched to  
determine the impacts of service quality on customer satisfaction and the implications for customer loyalty to  
determine the relationship between the two variables. The quantitative is used in this investigation. For data  
gathering, the primary data collection instruments were used. The questionnaire will divide into three (3)  
sections, for section A is demographic, the preliminary data were acquired using an open-ended questionnaire,  
while for sections B and C for customer satisfaction and customer loyalty, the data was collected using a 5-point  
Likert scale. It is accomplished using the static package for social science (SPSS) version 2.6. Customers who  
had previously visited Perhentian Island were chosen as the study's subject population for this research. The  
sample size for this researched consisted of 128 hotel guests who visited to the island of Perhentian before and  
after COVID-19. This study proved that four of service quality dimension (tangible, reliability, assurance, and  
responsiveness) have positive relation with customer satisfaction, except empathy had negative relation with  
customer satisfaction, also customer satisfaction has positive relation with customer loyalty.  
Keywords: Service quality, SERVQUAL dimension, Customer satisfaction, Customer loyalty, Perhentian  
Island  
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INTRODUCTION  
Preamble  
The first chapter provides an overview of the study as a whole. This study will examine the impact of service  
quality on customer satisfaction and the implications for customer loyalty on Perhentian Island, Terengganu.  
This chapter contains the study's background, problem statement, research objectives and research question, as  
well as the study's significance and definitions of key terms.  
Background of Study  
Malaysia's hotel sector is becoming increasingly competitive in the modern-day. Business rivalry is becoming  
increasingly fierce in the modern-day. Business owners may find it challenging to win the competition while  
maintaining sustainability. According to Fandy & Tjiptono (2016), businesses are compelled to prioritize  
customer satisfaction as a primary objective, with an increasing number of hospitalities involved in meeting  
customers' wants and aspirations. Additionally, it needs businesspeople to maximize a company's performance  
to compete effectively with other people in business in the same industry. Companies should try to learn about  
and understand their consumers' requirements and aspirations. By gaining knowledge of consumers' needs,  
aspirations, and demands, the business may develop a marketing plan that will result in customer happiness.  
Malaysia's economy is heavily reliant on tourism. According to the Malaysia Tourism Board 2019, the country's  
tourism sector grew by +16.9 percent in the first quarter of 2019, reaching RM21.4 billion in total visitor  
expenditure, up from RM18.3 billion in 2018. The country's tourism sector expanded well in the first quarter of  
2019 by +16.9 percent to RM21.4 billion in total visitor expenditure, up from RM18.3 billion in 2018. Foreign  
tourist visits in Malaysia increased by +2.7 percent in the first quarter of 2019, totaling 6,696,230 visitors, up  
from 6,520,218 in the first quarter of 2018.  
In other words, the growing importance of service quality in the hotel business for long-term competitive  
advantage via customer satisfaction and loyalty in a highly competitive market has prompted the expansion of  
this study. To succeed in the hospitality industry, it is critical to understand the direct and indirect relationships  
between service quality, customer satisfaction, and loyalty. Hotels always have an advantage in the hospitality  
business because they provide good service and earn the trust of their customers (Al-Ababneh, 2017). In addition,  
previous research has shown that giving good service is essential for making customers happy and keeping them  
coming back (Ha Thu, Hoang, Nhan Duc, & Anh Chi, 2018).  
The findings of this research universally indicated that every service should be given with the primary goal of  
satisfying the customer's requirements, wants, and expectations (Kotler & Keller, 2009). Numerous studies have  
been conducted to determine the relationship between service quality, customer satisfaction, and customer  
loyalty in the hotel service business. However, there hasn't been much research until recently. Among them are  
the technical and functional quality models, SERVQUAL (Brogowicz, Delene, & Lyth, 1990). Many people  
have looked into the relationship between SERVQUAL and customer loyalty, with customer satisfaction being  
a factor in some studies. On the other hand, very few people have examined how customer satisfaction affects  
the SERVQUAL-customer retention link (Fatima, Malik, & Shabbir, 2018).  
Perhentian Island  
In Malaysia, there are a lot of beautiful beaches and islands, which could be one of the reasons that draw people  
to the country. Three Malaysian beaches were the world’s 50 best beaches (CNN Travel, 2017). These three  
beaches are Tanjung Rhu in Langkawi, Kedah (49th), Juara Beach in Tioman Island, Pahang (21st), and Pulau  
Perhentian in Terengganu (13th rank). Malaysia is among the ten best places to visit globally (Lonely Planet,  
2017).  
Besut District Council, Terengganu, has run Perhentian Island as a tourist attraction on the island since 1995. It  
has proliferated to become a popular destination for locals and tourists worldwide. This map shows how far  
away Kuala Besut to Perhentian Island is by sea: about 10.8 nautical miles (20 kilometers). The island is part of  
Page 1134  
the Besut District Council, which is in charge of the area around the island (Besut District Council, 2020). There  
are nine islands in the archipelago. They are called Perhentian Besar, Perhentian Kecil, and Rawa, all in  
Malaysia. People there are Susu Dara Kechil, Susu Dara Besar, Serenggeh, and Tokong Laut.  
Figure 1: Maps of Perhentian Island  
Inhabitants live on only two islands: Perhentian Besar Island and Perhentian Kecil Island, both in the same group  
of islands. Most tourist places are on Perhentian Besar and Long Beach (Pasir Panjang). When people live on  
Perhentian Island, the primary mode of transportation is a boat, called a "water taxi" by those who live there. In  
Kuala Besut, tourists can board a ship from the land (Besut District Council, 2020).  
Pulau Perhentian Besar has many tourist attractions, such as Teluk Pauh and Pasir Jong. In Pulau Perhentian  
Kecil, there are many things to do in Pasir Panjang, Teluk Kerma, and Teluk Aur, as well as in other places. It  
is also well-known for its white sandy beaches and clear water. So, most of the hotel services on the island are  
in Pasir Panjang. Perhentian Island also has restaurants, travel agents, tourism operators, handicraft shops, and  
other businesses, making it easier for locals to get involved in the tourism industry and allowing more people to  
start their businesses.  
According to the Department of Marine Parks Malaysia (2019), it is also one of the Malaysian islands turned  
into a sea park. Malaysia can set up a marine park under Section 41 of the Fisheries Act 1985. A big part of the  
Act is Section 45. Its goal is to protect, preserve, and manage marine ecosystems, especially coral reefs and other  
types of plants and animals. These ecosystems play a big part in keeping the oceans stable.  
According to Selam (2019), Perhentian Island is a significant holiday destination on the East Coast of Peninsular  
Malaysia on weekends, especially on public holidays. Dumping no less than 200000 visitors annually and  
targeting the number increases to 450,000 to 500,000 a year. There are about 3000 rooms for rent on Perhentian  
Island, Terengganu, from 42 chalet and resort operators. The rooms are divided into different types, such as  
Luxury Resorts, medium and low-class chalets, dorms, and camping areas, with rental prices ranging from  
RM100 to RM1500 per day.  
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Statistics of Tourist Visit Marine Park at  
Terengganu  
300000  
250000  
200000  
150000  
100000  
50000  
0
255352  
198096  
177766  
176651  
153190  
130174  
115738  
109331  
98378  
2011  
107442  
2017  
95274  
2012  
93181  
2016  
86230  
2010  
82686  
2013  
68111  
2015  
63998  
2014  
Local Tourist  
Oversea Tourist  
Figure 2: Statistics of tourist visiting the marine park at Terengganu; sources Department of Marine Parks  
Malaysia 2019  
Problem Statement  
Every business's primary goal is to acquire and service customers; nevertheless, the most challenging task that  
businesses confront is determining how to delight them, keep them, and maintain their loyalty throughout their  
existence. Customer satisfaction and loyalty in service-based organizations, particularly hotels, have been  
recognized by several researchers (Bucak, 2014) as vital tools for increasing customer satisfaction and loyalty.  
In the service sector, the level of service quality is significant. According to studies, there is a favorable  
association between SERVQUAL and customer satisfaction, which results in customer loyalty or retention and  
repeat consumer purchase behavior (Bello & Majebi, 2018).  
However, several problems arise related to the quality of services provided by hotel operators, thus affecting  
customer satisfaction (Zaid & Sudarmo, 2019). Among the main issues that are the weakness of hotels, benefits  
are due to employees not having experience in management and lack of skills related to the hospitality industry  
(Wei, 2019). In addition to the problem of inexperienced workers, another issue arises: customers find that the  
services provided are not the same as those offered (Sawatsuk et al., 2018). For example, when the customer  
arrives at the destination to check in, the customer finds that the hotel provides a different room package than  
advertised on the advertisement or booking website. Customers are forced to enjoy other activity packages as  
previously booked (Mathachan, 2018). Customers also experience problems when hoteliers use fake photos to  
attract customers' attention to use their services (Gan et al., 2018).  
Issues like this will impact customer satisfaction and loyalty because the service provided is not high quality  
(Danmei, 2019). If customers are unsatisfied and feel uncomfortable with the services offered, the hotel's  
performance will also be affected (Kuhzady & Ghasemi, 2019). Hotels will face difficulties getting customers  
in the future, and customers will no longer be interested in making repeat visits (Kim et al., 2019).  
To identify service quality and customer satisfaction when using homestay services, this study will use the five  
dimensions of the SERVQUAL model. The dimensions consist of tangible, empathy, reliability, assurance, and  
responsiveness. These five dimensions are related to the physical facilities provided by the homestay, safety  
assurance, trust value, and the entrepreneur's understanding of the needs and wishes of their customers (Al-  
Laymoun et al., 2020). Improvements to the quality of service can be made and maintain the business  
performance of rural entrepreneurs (Patyal & Koilakuntla, 2017).  
Research Objective  
The aims of this study are:  
To determine the relationship between SERVQUAL dimensions and customer satisfaction in  
Perhentian Island.  
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To determine the relationship between customer satisfaction and customer loyalty in Perhentian Island.  
Research Questions  
What is the effect between SERVQUAL dimensions and customer satisfaction in Perhentian Island?  
What is the effect between customer satisfaction and customer loyalty on Perhentian Island?  
Significance of Study  
This research study will find and contribute to the treatment of academic respective and practical aspect, which  
is:  
Academic Perspective  
This research finding can be used and displayed for reference to other researchers, students, and lecturers to  
study the information related to this research topic. Anyone can use all data and information provided for  
academic purposes as a reference.  
Practical Perspective  
This research finding can be used to assist the hospitality business in understanding consumer satisfaction  
concerning service quality, customer satisfaction, and customer loyalty to product offerings. Practitioners  
seeking to improve their organization's image, value, and customer happiness must concentrate on how to  
produce better service quality and learn how to handle instances involving service failures. Managers must  
implement a service guarantee policy in the event of a loss to reinforce their hotel perceived worth, hence  
improving the hotel's corporate image. The empirical findings of this research provide light on how hotel  
customers conceive service excellence. The study's second-order latent variable methodology allows hotel  
entrepreneurs to discover and evaluate the characteristics influencing consumers' perceptions of service quality.  
Hotel management may assess customer impressions of service quality at a global level, a main dimensional  
level, a sub-dimensional level, or all three levels, depending on their strategic objectives.  
Limitation  
There are a few limitations that have been identified in this study. Firstly, this research identifies the relationship  
between the SERVQUAL dimension and customer satisfaction and customer loyalty in the hotel industry on  
Perhentian Island. Furthermore, this research will analyze the SERVQUAL Model to confirm which service  
quality most affected customer satisfaction at hotels in Perhentian Islands. Therefore, this research is only  
applicable to the hotel on Perhentian Island.  
Scope of Study  
This study is mainly focused on examining the effect of the relationship between service quality and customer  
satisfaction and loyalty. The study's independent variables are tangibles, reliability, responsiveness, assurance,  
and empathy, with the identified mediating variables customer satisfaction and dependent variables customer  
loyalty. This study is limited to investigating the relationship between service quality on customer satisfaction  
and its implication to customer loyalty in Perhentian Island, Terengganu.  
Definitions of the Key Terms  
Service Quality  
According to Parasuraman, Zeithaml, & Berry (1988), service quality was "the overall evaluation of a specific  
service firm that comes from comparing that firm's performance to the customer's general expectations of how  
firms in that industry should perform." This is how you would say it: It's about meeting or exceeding customer  
expectations, or the difference between what customers think they should get from a service and what they get  
Page 1137  
from it said the people who talked to me. A good service meets the needs or expectations of the people who use  
it, according to (Lewis & Mitchell, 1990).  
Customer Satisfaction  
This one says that customer satisfaction is an emotional state when people are happy (Oliver, 2010). According  
to a study, satisfied customers are more likely to return and recommend the business to their friends and relatives  
(Gibson, 2005).  
Customer Loyalty  
According to Campbell (2021), customer loyalty is when a person does business with the same brand or company  
repeatedly. They are people who choose one company, location, or program over another available one.  
Sometimes, even though prices are higher or policies are more strict, loyal customers still choose their favorite  
option, no matter how much it costs or how easy it is. As long as they keep coming back, customers tend to  
believe that the products they get will be good, so they are willing to pay a little extra to ensure their expectations  
are met.  
LITERATURE REVIEW  
Preamble  
This chapter will examine the relationship between service quality, customer satisfaction, and loyalty on  
Perhentian Island, Terengganu. The researcher will discuss SERVQUAL, customer satisfaction, and customer  
loyalty in general but will refrain from going into detail. The researcher will then discuss the relationship between  
the variables determining service quality.  
Tourism in Terengganu  
Malaysia is an excellent place for many people in Asia and the Asia Pacific (Nasir, Mohamad, & izzati Ab,  
2021). Second in the world in 2019: Malaysia was named the second most friendly city (Tourism Malaysia,  
2021). The Malaysian people are friendly to tourists, making them feel more at home when they visit any of the  
states. If people want to go to Malaysia, people should go to Terengganu, known for its beautiful beaches and  
islands like Kapas, Tenggol, Lang Tengah, Perhentian and Redang. Furthermore, Kuala Terengganu is a city on  
the water with many old buildings. This made this state a popular destination for tourists and a corridor for  
investors (Ab Ghani, et al., 2021). Besides that, tourists come to Terengganu to try some of the local food served  
by the people there. This food is called nasi dagang and is made with groundfish (a sweet dessert).  
According to Mohamad, Ab Ghani, & Nasir (2019), that increasing tourists' loyalty to the destination should be  
the prima goal because it could have a significant impact on the people in the long run. Thus, tourists will be  
more likely to stay at a certain place if the study can figure out what makes people stay there. In Jiang and Hong's  
study, it will be more personal if tourists feel that what they give up in terms of money and non-money is worth  
it. They will also be more loyal to the place they are going to (Huang, Gao, & Hsu, 2019). The tourists and  
should have a strong personal connection. This would also make many people loyal to their place when they  
were younger. The site they visit should have a solid emotional connection. This would also make many people  
dedicated to their place when they were younger (Nurbasari, Kuswoyo, Aribowo, & Raharjo, 2021). Figure 1  
illustrates the number of domestic tourist arrivals to Terengganu from 2018 to 2020. Sources from Poket Stats  
Negeri Terengganu ST3 2021.  
TOURISM SECTOR  
Indicators  
2018  
2019  
2020  
Number Of Hotel Occupants  
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Domestic (‘000)  
International (‘000)  
Total (‘000)  
1,712.6  
179.6  
1,738.4  
179.3  
1,325.1  
19.8  
1,892.2  
4.58  
1,917.8  
1.35  
1,344.9  
-29.87  
Change (%)  
Figure 3: Economic Indicators Tourism at Terengganu  
Terengganu aims to be the third most visited state in Malaysia in five years. Among the main focus is to ensure  
the quality-of-service delivery, emphasizing the development of a diversity of tourism products through the  
tourism community approach and strengthening the marketing infrastructure network through the synergy of  
various agencies, which can boost the income of the people and the state.  
Perhentian Island During Covid-19  
At the end of 2019, people began becoming ill with Coronavirus disease-2019 (or COVID-19). SARS-CoV-2, a  
novel Coronavirus, was responsible for the transmission of this new disease. It is now spreading quickly around  
the world. New problems have arisen in every part of human life because of the COVID-19 pandemic. Many  
new rules have been put in place by the government to stop the spread of this pandemic. The tourism industry is  
one of the places that this pandemic has hardest hit. According to (Noor Atiqah, 2021) during this pandemic, the  
country's tourism industry took a big hit, with an estimated loss of RM135 billion. RM165 billion is what this  
amount will be in 2021. Long-term cooperation must be used to reach the goal of 16 million international tourists  
and at least RM45 billion in revenue in the tourism industry by 2025. On the other hand, Tourism Malaysia  
needs to do more to promote Malaysia's uniqueness on the world stage, in line with MOTAC's focus on the  
planned opening of the tourism bubble.  
According to Zaid Salim (2020), Tourism in Terengganu, Malaysia, has decreased by 20% because of the  
COVID-19 pandemic, which began in late September. The Conditional Movement Control Order (CMCO) was  
enacted in the Klang Valley on October 14, 2021. Most tourists from the Klang Valley had to cancel or postpone  
their trips to Terengganu because of COVID-19. The CMCO was enticing because it was so bad. This has led  
to some hotels and resorts in Terengganu, Malaysia, canceling and postponing bookings during that time.  
Before COVID-19 hits Perhentian Island, located in Besut Terengganu (Fazlizai, 2021) this location will be  
filled with tourists who want to experience various water activities on the island. The clarity of the water, the  
beauty of the panorama, and the peaceful atmosphere of the sloping beach will give fun and excitement to visitors  
to enjoy the holiday. Coupled with thousands of game fish species, swarming the body while bathing is also a  
factor that attracts visitors to continue to visit it without getting tired. The arrival of COVID-19 in Malaysia has  
to some extent, had a very significant impact on the tourism industry. The tourism sector in Perhentian Island  
has received a very high impact when customers have canceled their bookings. At the same time, giving a  
significant impact on the hospitality operators on the island; this is because the hospitality operators have to  
return the customer's deposit and give the option of whether to postpone the holiday date.  
Otherwise, the pandemic has profoundly affected food stall operators, convenience stores, and local communities  
in earning a daily income. Previously, Perhentian Island's average resident or local community contributed to  
hospitality services such as working at resorts, taking boat water taxis, preparing and bringing tourists to  
snorkeling, etc. Still, when the COVID 19 virus hit, everything changed in 360 rotations. Among them, they had  
to go out to sea to catch fish and sell to the villagers to earn a living.  
People have also looked into how the COVID-19 crisis affected the tourism industry from several different  
perspectives, including how tourists' mental health (Zheng, Goh, & Wen, 2020), their travel preferences (Wen,  
Kozak, Yang, & Liu, 2020), and hotel management policies (Zheng, Goh, & Wen, 2020) affected the tourism  
industry (Japutra. & Situmorang., 2021). COVID 19 had a significant impact on the quality of the hotel's services  
because there was not enough employee in the hotel business. Guests had to wait longer to be treated and the  
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check-in process to be over. Because there is not more employee in one department. Often, there isn't a  
housekeeping department to get the room ready quickly for the next guest. Most employee who works at a hotel  
have previously changed their jobs to work at an existing factory. The employees who work at the hotel have  
decided not to return because they fear the tourism industry will be shut down again.  
Some customers write bad reviews about the service quality they get at a hotel when there aren't enough  
employee working there. This has a significant effect on the service quality when people write bad reviews about  
it. It will make it hard for other people to deal with and make reservations at the hotel. Customers sometimes  
have to put up with the hotel's problems when it comes to providing a transparent level of service. Issues such  
as these will affect customer satisfaction due to the services provided not being of high quality (Danmei,  
Research on Online Commentary Characteristics of Xitang Homestay Based on Network Text Analysis, 2019).  
If customers are dissatisfied and feel uncomfortable with the services provided then the performance of the hotel  
will also be affected (Kuhzady & Ghasemi, Factors influencing customers' satisfaction and dissatisfaction with  
hotels: A text-mining approach, 2019). Hotel will face difficulties getting customers in the future and customers  
are no longer interested in making repeat visits (Kim, Kim, & Heo, 2019).  
Service Quality (SERVQUAL)  
According to Abdullah & Afshar (2019), quality is a theory that is hard to pin down and understand. When doing  
business, it is important to know the difference between products and services. It is hard to hold on to something  
that is not real, like a performance (Abdullah & Abdul Rahman, 2015). An essential thing about services is that  
they are a process rather than an object. Service providers' products, on the other hand, are how they interact  
with people. Because services are not visible, neither the provider nor the customer can be sure about how good  
they are (Ali, et al., 2021). In the hospitality industry, service encounters are essential because they are part of  
the delivery process. The customer and the service provider should pay attention to them. Customer involvement  
in service interactions is critical to the hotel business's success or failure (Abdullah, 2018). Various academics  
and practitioners in the industry have numerous excellent definitions of service quality. Clients' expectations of  
the service provider and how they rate the service are at odds with each other (Saleh, et al., 2021). Another  
theory has been put forward by (Othman & Abdullah, 2016). According to this view, service quality is the  
difference between what customers expect and what they receive.  
Lately, service quality has become a significant focus for experts. It is easy to see that diverse definitions of  
"service quality" result from customers' attempts to connect their expectations with the actual results they receive  
from the service provider they are dealing with (Anwar & Abd Zebari, 2015). Numerous research initiatives  
have been conducted to determine which areas of service quality influence total service quality assessments in  
the service business. It is critical to discern evidence of service quality components to monitor, control, and  
improve customer perceptions of service quality (Anwar & Surarchith, 2015). The five SERVQUAL criteria  
have been regularly identified as the most critical for service quality in the hospitality industry by customers.  
The five characteristics of service excellence are tangible, reliable, responsive, assurance, and empathy. Table  
2.1 shows some of the previous research that led to developing SERVQUAL dimensions measures.  
Table 1: Dimension of SERVQUAL in Hospitality  
Sources  
Model  
SERVQUAL Dimension  
Grönroos (1984)  
Service Quality  
Model  
Technical quality, Functional quality,  
corporate image  
Philip & Hazlett (1997)  
PCP Model  
GAP Model  
Pivotal, Core, and Peripheral attributes  
Parasuraman, Zeithaml, &  
Berry (1985)  
Reliability, Responsiveness,  
Competence, Access, Courtesy,  
Communication, Credibility, Security,  
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Understanding/Knowing the Customer,  
Tangibles  
Haywood‐Farmer (1988)  
Service Quality  
Attributes  
Physical facilities, processes,  
procedures, People behavior and  
conviviality, and Professional judgment.  
Parasuraman et al. (1988)  
Cronin Jr. & Taylor (1992)  
Frost & Kumar (2000)  
SERVQUAL  
SERVPERF  
Tangibles, Reliability, Responsiveness,  
Assurance, Empathy  
Same as SERVQUAL but with  
performance-only statements  
INTSERVQUAL  
Reliability, Tangibles, Assurance,  
Responsiveness, Empathy  
(SERVQUAL)  
Dabholkar, Thorpe, & Rentz  
(1996)  
RSQS  
Physical aspects, Reliability, Personal  
interaction, Problem-solving, Policy  
Brady & Cronin (2001)  
Service Quality  
Model  
Personal interaction quality, Physical  
service environment quality, Outcome  
quality  
This word is also used to describe tangibles. Tangibles are things that look like physical facilities, employees,  
communication materials, and so on. There are many tangible examples of how clean a place is. For example,  
the rooms and restaurants are clean, the people there are clean and dressed appropriately, and disposable gloves  
are used (Abdullah, Toycan, & Anwar, 2017). The tangibles, which include all five dimensions, are the most  
important thing for the customer. This gives customers, especially new customers, a physical representation of  
their images to judge how good the service is. Most businesses mix tangibles and intangibles when setting up a  
service quality plan. Service providers often use tangibles to improve their reputation, create consistency, and  
show customers that they are good at what they do (Anwar & Balcioglu, 2016).  
Reliability is depicted if a service provider can be relied upon to keep their commitments. The most critical  
factor is ensuring that the customer's needs are met as quickly as possible (Hameed & Anwar, 2018). "The  
capacity of the service provider to execute services reliably and accurately" is reflected in the term "reliability".  
For the consumer, "getting it properly the first time" and "doing the right thing the first time" are two of the most  
essential dimensions as quoted in (Anwar & Ghafoor, 2017). Reliability means that the organization can deliver  
on its promises, including delivery, service provision, issue determination, and pricing policy, among other  
things. Customers want to collaborate with companies that honour their service-related promises (Anwar &  
Climis, 2017).  
To be Responsiveness, a company must be ready to deal with problems that arise and give quick service. It  
could become a complaint if you do not answer a customer's request. Major clients place a high value on service  
provider's ability to deliver on their promises of timely service. This aspect emphasizes the need to be aware of  
and respond quickly to the needs and concerns of your customers. Customers may tell how responsive a company  
is by how long they wait to respond to an inquiry. If the service can be changed, so it meets customers' needs,  
responsiveness is also part of this. The company's internal policy on being on time may differ from what  
customers want and expect. Front-line hotel workers, such as receptionists, waitresses, hostesses, and other  
people who have direct contact with guests, must be well-trained and able to respond to their needs and wants  
(Anwar & Abdullah, 2021).  
Assurance is defined as "the ability of employees to inspire trust and confidence via their knowledge and  
civility." As long as customers feel confident in the hotel, they'll be happy to pay for it. Guests expect to feel  
safe when using the hotel's many amenities and services, and they hope that feeling to continue throughout their  
Page 1141  
stay (Anwar & Louis, 2017). Consistent with, customers should have confidence in the companies they transact  
their money with. This component is critical for services that customers regard as high-risk or for which the  
outcome is unpredictable (Anwar & Abdullah, 2021).  
Empathy it defines customers' need to believe that their needs are being prioritized by the company that provides  
them with services. To express empathy, a business must demonstrate concern, pay attention to its customers'  
needs, and assist them. To be empathic, you must make people feel special and unique in their way. In  
quantitative studies, security, credibility, and accessibility have all been employed to identify service quality  
model aspects.  
Customer Satisfaction  
It refers to the degree to which a business's products and services satisfy or surpass the expectations of its  
customers or clients (Fornell, Morgeson, Hult, & Van Amburg, 2020). Customer satisfaction is a psychological  
notion that refers to the experience of well-being and pleasure associated with receiving what one desires and  
expects from a product or service (Kotler & Keller, 2016). A conclusion is drawn based on the fact that a feature  
of a product or service, or the product or service itself, makes customers happy and satisfied. Using it makes  
customers happy whether it's a feature of a product or service or the product or service itself. This is called an  
evaluation (Basari & Shamsudin, 2020).  
According to (Kwizera, et al., 2019) When it comes to the service industry, customer satisfaction is a common  
topic of discussion, especially true in the hotel industry. (Leninkumar, 2017) When customers are satisfied, they  
are more likely to become loyal and refer new business to a business, which is why customer satisfaction and  
customer loyalty are inextricably linked. In the hotel industry, customer satisfaction is very important to making  
money (Eklof, Podkorytova, & Malova, 2018). Businesses need to think about customer experience when  
competing with each other for customers, and it has become a big part of their strategy over time. Naturally,  
hotels in the same star category compete on customer satisfaction because their offerings are comparable  
(Sanchez-perez, Illescas-Manzano, & Martinez-Puertas, 2020). As a result, client satisfaction should be  
examined and maintained in the same manner as any other physical asset. Customer satisfaction and customer  
service are closely intertwined, and the value of employee attitude cannot be emphasized.  
Customer satisfaction is influenced by various factors: service quality, quantified as part of the customer  
satisfaction index (Nunkoo, Teeroovengadum, Ringle, & Sunnassee, 2020). The degree to which a customer is  
satisfied with a service is critical in determining customer satisfaction. According to studies, people who are  
satisfied with the service they receive are more likely to be satisfied with their service. Consumer satisfaction is  
inextricably tied to the environment in which services are offered.  
Customer Loyalty  
Customer loyalty is a valuable habit for entrepreneurs to acquire to keep clients from switching to other products  
or services (Ranabhat, 2018). According to (Ozkan, 2019) Customer loyalty refers to a supplier's ability to  
maintain a long-term relationship with a customer. (Joudeh & Dandis, 2018) Assuming that consumer loyalty  
encompasses critical characteristics that satisfy the desires or demands of customers, this is the moment to deliver  
quality following their expectations. According to (Ishak & Ghani, 2010) Because it incorporates several  
elements that attract clients, customer loyalty is an effective tool to compare competitors' firms.  
Loyalty is associated with the procedures required in making repeat or frequent purchases and the regularity  
with which those transactions are made. Customer loyalty is linked to variety; a high level of commitment can  
be predicted when a considerable number of items is sold or when the price of goods rises significantly. Loyal  
customers generate revenue for an organisation. Customers that consistently purchase products and think  
positively about a firm are considered loyal. Customer loyalty is measured not just by the number of people who  
have been to the hotel but also by how many people are loyal to certain hotel features or amenities (Nobar &  
Rostamzadeh, 2018).  
According to Japarianto, Laksmono, & Ainy (2007), Customer loyalty is influenced by the following factors:  
Page 1142  
Customers that are considerate of others will please the company, and if they purchase from them again,  
they will become loyal to the company.  
Trust develops over time as customers develop confidence in the organization and as both parties develop.  
Once trust has been created between the client and the business, it will be pretty simple to boost customer  
happiness.  
The company must safeguard its customers by providing high-quality products, providing excellent  
service, and promptly responding to customer complaints so that they believe the company is genuinely  
committed to their well-being.  
Overall satisfaction generally refers to the value acquired through the acquisition and consumption of  
products and services over a specified time.  
Customer loyalty is critical for customer satisfaction; in reality, positive customer behavior and attitude are  
associated with high-quality products and services; when customers demonstrate positive behavior toward a  
service provider, these customers are called loyal.  
Relationship Between SERVQUAL And Customer Satisfaction  
Numerous studies have been conducted on the relationship between service quality and customer satisfaction in  
various industries. Customers who are satisfied with their service believe they are receiving a fair deal. Guests  
who enjoy the look and feel of their hotel room are more likely to be satisfied with their stay. Numerous people  
also took note of the staff's appearance and accuracy. They also looked at the hotel, the food, and the service  
they provided. (Hossain, 2012) People who researched how tourists felt about service quality in Bangladesh used  
SERVQUAL to look at five different types of quality. Its tangible qualities of reliability, responsiveness,  
assurance, and empathy contribute to SERVQUAL. The five service quality aspects were proven to have a  
beneficial effect on customer satisfaction. The most significant factor was empathy, followed by responsiveness,  
reliability, assurance, and tangibleness. It turns out that the quality of service significantly impacts how satisfied  
hotel customers are during their stay. This was found by (Srinivas & Padman, 2013). Assurance, empathy,  
responsiveness, tangibility, and reliability were the five things customers thought about when they thought about  
what they wanted and what they wanted. They also talked about responsiveness, reliability, confidence,  
tangibility, and communication, which they said were important things to look for. It has been found that  
customer satisfaction and three service quality dimensions are linked together, but not with empathy and  
tangibility (Shafiq, Shafique, Din, & Cheema, 2013).  
Numerous studies demonstrate that the majority of individuals associate service quality aspects with customer  
satisfaction. Because the service quality factors affecting customer satisfaction are distinct, they are not  
equivalent. Customers are more satisfied when service providers show that they care about them. (Hossain, 2012)  
found this to be the case, while (Srinivas & Padman, 2013) found that assurance was the most important. It may  
be because the study was done differently than other studies. So, it is important to research different places to  
figure out which dimensions are most important in different places.  
H1: Positive relation between Empathy and customer satisfaction.  
H2: Positive relation between Reliability and customer satisfaction.  
H3: Positive relation between Responsiveness and customer satisfaction.  
H4: Positive relation between Assurance and customer satisfaction.  
H5: Positive relation between Tangible and customer satisfaction.  
Page 1143  
Relationship Between Customer Satisfaction and Customer Loyalty  
If a hotel business is healthy, customers who stay with them are seen as a good sign for the service business  
because they keep coming back. (Pullman & Gross., 2004) Customer loyalty research in the hospitality industry  
backs up the idea that different people are loyal to the same service provider (Park, Jeong, Wilkins, W. Merrilees,  
& Herington., 2019; 2010). Hotel owners must understand the elements that drive customer loyalty in order to  
develop tactics to retain existing customers. New customers become loyal to the hotel to keep making money  
(Prebensen, Chen, & Uysal, 2018). To keep coming back to the hotel, guests need to have fun and be satisfied  
during their stay. They will also be more likely to tell their family and friends about the hotel (Berry, Will, &  
Carbone, 2006). Customer loyalty is important for long-term success because it helps you keep and grow a large  
and loyal customer base, which is important for long-term success. They said that people who were happy with  
their previous hotel stays should not become loyal customers because they might want to try new things at other  
places. We need to find out more about how satisfied people are with their service and how likely they are to  
stay with them in this industry.  
H6: Positive relation between customer satisfaction and customer loyalty.  
Theoretical Framework  
To test the correlations and relationships between dependent and independent variables, the conceptual  
framework model shown in Figure 3 was made. The five dimensions of SERVQUAL are the five independent  
variables, and customer satisfaction are mediating variable and customer loyalty are the dependent variables that  
come from them. It looks at the effects of five SERVQUAL dimensions on customer satisfaction and how  
customer satisfaction affects customer loyalty in the hotel industry on the island of Perhentian, Malaysia. The  
framework adopts from Ladhari, 2009. The following hypotheses are made:  
TANGIBLE  
H1  
H2  
EMPHATHY  
RELIABILITY  
H6  
CUSTOMER  
SATISFACTION  
H3  
H4  
ASSURANCE  
H5  
RESPONSIVENESS  
Figure 3: Theoretical framework  
Sources: (Ladhari, 2009)  
H1: Positive relation between Tangible and customer satisfaction.  
H2: Positive relation between Empathy and customer satisfaction.  
H3: Positive relation between Reliability and customer satisfaction.  
Page 1144  
H4: Positive relation between Assurance and customer satisfaction.  
H5: Positive relation between Responsiveness and customer satisfaction.  
H6: Positive relation between customer satisfaction and customer loyalty.  
Chapter Summary  
There have already been a lot of studies done to find out how SERVQUAL and customer satisfaction affect  
customer loyalty. These studies have been done for various reasons and with different goals. However, the  
researcher still did this research because they want to talk more about how other research can be used with this  
study's sample.  
RESEARCH METHODOLOGY  
Preamble  
This chapter discusses the researcher's methodology. It discusses research methodology, population and  
sampling design (population, sampling design, sampling frame, sampling method, and sample size), data  
collection techniques, research procedures, and data analysis techniques.  
Research Design  
Research design is the main idea that briefly describes the method and procedures for accumulating and  
analyzing the information. All studies must be deliberated and pplanned correctlyaccording to the information  
collected and guaranteed is suitable for the particular research project. The quantitative approach is the method  
used for the preparation of this research. (Bhandari, 2021) Quantitative research is concerned with collecting  
and analyzing numerical data. It can assist the researcher in identifying patterns and averages, forecasting future  
events, examining causal linkages, and generalizing researcher findings to a larger population.  
Uses descriptive methods to help the researcher figure out what kind of people are in a given situation, how they  
think about that situation, and how to make a simple choice. This is a cross-sectional study where data can be  
gathered just once over a certain period to answer the research question (Saunders, Lewis, & Thornhill, 2009).  
This is a convenience sampling because often selects participants that are available around a location (Stratton,  
2021) and the unit analysis is individual.  
Population and Sample  
According to (Bhandari, 2021) The population is the entire group of persons about whom the researcher wishes  
to draw conclusions, and it is the group upon whom such conclusions are to be drawn. A sample is a group of  
people from which the researcher will get data. There is always less in the sample size than in the whole  
population. In research, the term "population" does not always mean people. It can be any group of things,  
events, organisations, countries, species, or animals that the researcher wants to study.  
This study's population is composed of hotel guests who have benefited from the hotel services on Perhentian  
Island, Terengganu. This population is heterogeneous, which means that it varies in age, last education, the  
purpose of staying at the Perhentian Island, and gender. Objects or subjects with qualities that have been  
determined by researchers, which are then concluded, are the meaning of the population (Sujarweni, 2018).  
The sample size refers to the number of a hotel guest in the group. The group of a hotel guest who has used  
hospitality services on Perhentian Island, Terengganu, will be examined in this study. G*Power is a general-  
purpose power analysis tool that can figure out sample sizes and how much power there is in research. To figure  
out how many samples researchers need for the independent group t-test. The concept and procedures for  
calculating the sample size for surveys and hypothesis testing experiments (Faul, Erdfelder, Lang, & Buchner,  
2007). So, the sample in this study was 128 people who came on Perhentian Island, Terengganu.  
Page 1145  
Figure 4: G*Power sample size calculation  
Research Instrument  
The questionnaire will be based on previously conducted research. The questionnaire is divided into three  
sections. Section A contains demographic information, whereas sections B through C focus mostly on  
SERVQUAL aspects, customer satisfaction, and loyalty. For part A, open-ended questions will be used; for  
sections BC, a five-point Likert scale will be employed, with questions demanding replies to statements ranging  
from (5) strongly agree, (4) agree, (3) neutral, (2) disagree, and (1) strongly disagree.  
Table 2 Set of questionnaires SERVQUAL Dimensions, Customer Satisfaction and Customer Loyalty  
TANGIBLE  
The hotel has modern looking equipment  
11  
12  
1
1
2
2
3
3
4
4
5
5
Hotel ini mempunyai peralatan yang kelihatan  
moden  
The hotel provides clean and comfortable rooms  
Hotel ini menyediakan bilik yang bersih dan selesa  
The hotel has swimming pool, sauna and health  
club  
13  
14  
1
1
2
2
3
3
4
4
5
5
Hotel ini mempunyai kolam renang, sauna dan  
kelab kesihatan  
The hotel has adequate fire safety facilities and  
instructions  
Page 1146  
Hotel ini mempunyai kemudahan dan arahan  
keselamatan kebakaran yang mencukupi  
EMPATHY  
The hotel gives its customers individualized  
attention  
15  
1
2
3
4
5
Hotel ini memberikan perhatian individu kepada  
pelanggannya  
Staff of the hotel understand the specific needs of  
their customers  
16  
17  
1
1
2
2
3
3
4
4
5
5
Kakitangan hotel memahami keperluan khusus  
pelanggan mereka  
Staff of the hotel have customers best interest at  
heart  
Kakitangan hotel mengutamakan minat pelanggan  
RELIABILITY  
Staff of the hotel are able to provide service as  
promised  
18  
19  
20  
1
1
1
2
2
2
3
3
3
4
4
4
5
5
5
Kakitangan hotel mampu memberikan  
perkhidmatan seperti yang dijanjikan  
Staff of the hotel are dependable in handling  
customers service problems  
Kakitangan hotel boleh dipercayai dalam  
menangani masalah perkhidmatan pelanggan  
The hotels keep customer informed of the  
performance of services  
Pihak hotel memaklumkan pelanggan tentang  
prestasi perkhidmatan  
ASSURANCE  
Staff at the hotel are consistently courteous and  
friendly with customers  
21  
1
1
2
2
3
3
4
4
5
5
Kakitangan di hotel sentiasa sopan dan mesra  
dengan pelanggan  
The hotel provides a safe environment to stay in  
22  
Hotel ini menyediakan persekitaran yang selamat  
untuk menginap  
Page 1147  
Staff of the hotel have knowledge to answer  
customer’s request  
23  
1
2
3
4
5
Kakitangan hotel mempunyai pengetahuan untuk  
menjawab permintaan pelanggan  
RESPONSIVENESS  
Staff at the hotel are ready to respond to  
customers’ requests  
24  
1
1
2
2
3
3
4
4
5
5
Kakitangan di hotel bersedia untuk menjawab  
permintaan pelanggan  
Staff at the hotel are always willing to help  
customers  
25  
Kakitangan di hotel sentiasa bersedia membantu  
pelanggan  
CUSTOMER SATISFACTION  
I will still go to Perhentian Island  
24  
1
1
2
2
3
3
4
4
5
5
Saya tetap akan ke Pulau Perhentian  
I will recommend this Perhentian Island to others  
25  
Saya akan mengesyorkan Pulau Perhentian ini  
kepada orang lain  
I will go to Perhentian Island next time  
26  
1
1
2
2
3
3
4
4
5
5
Lain kali saya akan ke Pulau Perhentian  
I will buy Perhentian Island services  
27  
Saya akan membeli perkhidmatan Pulau Perhentian  
I will recommend my friends and relatives to visit  
Perhentian Island  
28  
1
2
3
4
5
Saya akan mengesyorkan rakan-rakan dan saudara-  
mara saya untuk melawat Pulau Perhentian  
I feel that Perhentian Island's performance is very  
strong  
29  
1
1
2
2
3
3
4
4
5
5
Saya rasa persembahan Pulau Perhentian sangat  
mantap  
I will consider Perhentian Island as my first choice  
when I make a vacation plan  
30  
Page 1148  
Saya akan menganggap Pulau Perhentian sebagai  
pilihan pertama saya apabila saya membuat  
rancangan percutian  
CUSTOMER LOYALTY  
I will pay any price requested this Perhentian Island  
even if the prices of other Island less  
31  
1
1
2
2
3
3
4
4
5
5
Saya akan membayar apa-apa harga yang diminta  
operator Pulau Perhentian ini walaupun harga  
Pulau lain kurang  
I will not deal with any competitor island offers  
lower prices  
32  
Saya tidak akan berurusan dengan mana-mana  
pulau pesaing yang menawarkan harga yang lebih  
rendah  
Low price in competitors island will not lead me to  
switch to it  
33  
1
1
2
2
3
3
4
4
5
5
Harga rendah di pulau pesaing tidak akan  
menyebabkan saya beralih kepadanya  
The price not represents any importance to me when  
dealing with Perhentian Island  
34  
Harga tidak mewakili apa-apa kepentingan kepada  
saya apabila berurusan dengan Pulau Perhentian  
I will not switch to any competitor island if I face a  
problem in dealing with this island complaint  
behaviour  
35  
1
2
3
4
5
Saya tidak akan bertukar ke mana-mana pulau  
pesaing jika saya menghadapi masalah dalam  
menangani tingkah laku aduan pulau ini  
If I have problem in dealing with this island, I will  
not move my complaint to customers close to me  
Jika saya mempunyai masalah untuk berurusan  
dengan pulau ini, saya tidak akan mengadukan  
aduan saya kepada pelanggan yang berhampiran  
dengan saya  
36  
37  
1
1
2
2
3
3
4
4
5
5
If I have a problem in the service provided, I will  
transfer them directly to the operators  
Jika saya mempunyai masalah dalam perkhidmatan  
yang disediakan, saya akan memindahkannya terus  
kepada pengendali.  
Page 1149  
Item Development  
The item used in survey instrument is adapted from the past research. Item of SERVQUAL dimension were  
adopted from (Bayad, et al., 2021) that studied on hotel SERVQUAL in hospitality industry. This part consists  
of fifteen (15) items of question SERVQUAL dimensions. Item of customer satisfaction is adapted from  
(Sihombing. & Hellen., 2021) that studied on factors that affect customer satisfaction staying at Chain Hotel,  
there are seven (7) items of customer satisfaction. There are seven (7) items of customer loyalty adapted from  
(Al.Bostanji, 2013) that looked into how service quality affects customer loyalty. The total number of items in  
the survey instrument is shown in Table 2.  
Table 3: Item Development  
Construct  
No of item  
Author  
Tangible  
4
3
Bayad, et al., 2021  
Empathy  
Reliability  
3
Assurance  
3
Responsiveness  
Customer Satisfaction  
Customer Loyalty  
TOTAL  
2
7
Sihombing & Hellen, 2021  
Al Bostanji, 2013  
7
29  
Data Collection  
According to McLaughlin. & Emily (2020), Data collection is the process of gathering and measuring  
information from many sources to get an accurate and complete picture of a field of study. This study is based  
on data that researchers get and process from the person they are studying. This is called primary data. This data  
came from the results of a survey that was done by giving out questionnaires that were measured on a 5-point  
Likert scale. Google Forms were used to send questionnaires to respondents through WhatsApp and Facebook,  
and they were given directions and explanations in advance so that they knew how to fill them out and in other  
way, the questionnaire also pass to respondent by QR code, its mean respondent needs to scan the code first for  
gathering the questionnaire by online survey. This method uses because need to prevent or keep social distancing  
during endemic COVID 19. Experts or academics will look over the questionnaire before it can be used to get  
data in the future. The data collection takes around one (1) month to get a respondent. And the collection starts  
of middle of month May and finish on July.  
Data Analysis  
The data collected from respondents was analysed using a static software programme: statically package for  
social science (SPSS) version 26. (Norhisham. & Shuhairy., 2018) SPSS is a statistical computer program that  
works to help process statistical data accurately, and produce the output desired by decision makers. A  
descriptive method is to put the data in a frequency distribution table or graph that shows how many people are  
in each category of the scale of measurement. The most common way to measure frequency is to look at the  
central tendency and spread of the data (mean, median and mode). It is one of the most common reliability  
estimates in the literature on language testing. It is used to figure out how much of a set of test scores have the  
same variance.  
Page 1150  
Data collection is to analyse the data obtained from the respondents. Researchers use multiple regression analysis  
methods (multiple regression analysis) to analyse this study's data. To measure the answers obtained, the  
researcher uses a nominal scale for descriptive analysis, which is carried out to analyse data based on descriptions  
or descriptions with the intention of not concluding (Sugiyono, 2017), validity test to measure whether or not a  
questionnaire is valid (Sujarweni, 2018). A research questionnaire is declared valid if it has a loading factor  
greater than 0.6, while if the loading factor is less than 0.6, the research questionnaire is declared invalid (Hair,  
Black, Jabin, & Anderson, 2014). A reliability test is if a questionnaire is reliable or reliable if someone's answer  
to the statement is consistent or stable from time to time. A research questionnaire is declared reliable if  
Cronbach's Alpha is greater than 0.6 and declared unreliable if Cronbach's Alpha is less than 0.6 (Sujarweni,  
2018). Correlation is meant for exploring the degree of relationship between two variables in consideration.  
Correlation coefficient is the measure to quantify such degree of relationship of the variables. Generally, two  
correlation coefficients are used in applications, namely: Pearson’s Product Moment Correlation Coefficient and  
Spearman’s Rank Correlation Coefficient. Correlation coefficients “r” value should be at least at 0.4 or the  
relationship should be at moderate level to ensure that the hypothesis is accepted according to Guilford and  
Ruchter.  
FINDING AND ANALYSIS  
Introduction  
The purpose of this chapter is to gather data regarding examine the effect of hotel service quality on customer  
satisfaction and implications for customer loyalty in Perhentian Island, Terengganu. Analysis and interpretation  
of data will be described in detail in this chapter. Result from analysis will also be presented in this chapter. This  
chapter contains five main sections: 1) Demographic analysis, 2) Reliability tests, 3) Validity tests, 4)  
Descriptive tests, and 5) Correlation tests.  
Results that are shown in this chapter were obtained through a questionnaire survey which conducted within 1  
month. The questionnaires that were distributed to the individuals who have benefited from the hospitality  
services on Perhentian Island, Terengganu have been chosen as the best method for collecting data. This  
approach was selected in order to ensure that the results are based on customer’s own experience of using  
hospitality service on Perhentian Island, Terengganu.  
Response Rate  
Before explaining the demographic profiles of the respondents, it is worth to touch on the response rate of this  
study. 138 questionnaires were distributed and a total of 128 responses were successfully collected from the  
process, which represents 100% of response rate. 10 questionnaires was rejected because some of the respondent  
didn’t complete the questionnaire and the answer not satisfied with justification by researcher.  
Demographic Analysis  
There are nine types of demographic data explained in this section. It includes (i) State of origin (ii) Age (iii)  
Gender (iv) Marital status (v) Race (vi) Which categories are you (vii) Purpose of travel (viii) Travel party type  
(ix) Monthly salary. This data is important as it can be used to analyse the background of the respondents that  
participate in this research.  
Table 4: Demographic Profile of the Respondent (n= 128)  
N
16  
4
%
State of Origin  
Terengganu  
Perlis  
12.5  
3.1  
Selangor  
23  
18.0  
Page 1151  
Negeri Sembilan  
Johor  
7
13  
18  
6
5.5  
10.2  
14.1  
4.7  
Kelantan  
Perak  
Kedah  
10  
6
7.8  
Pahang  
4.7  
Pulau Pinang  
Melaka  
10  
3
7.8  
2.3  
Sabah  
2
1.6  
Sarawak  
2
1.6  
Wilayah Persekutuan  
Others  
6
4.7  
2
1.6  
Age  
18 25 years old  
26 35 years old  
36 45 years old  
46 55 years old  
56 65 years old  
66 Above  
Male  
14  
55  
42  
14  
3
10.9  
43.0  
32.8  
10.9  
2.3  
0
0
Gender  
62  
66  
41  
87  
90  
22  
14  
2
48.4  
51.6  
32.0  
68.0  
70.3  
17.2  
10.9  
1.66  
12.5  
57.8  
23.4  
Female  
Marital Status  
Race  
Single  
Married  
Malay  
Chinese  
India  
Others  
Which Categories  
are You  
Student  
16  
74  
30  
Employee  
Self-employed  
Page 1152  
Unemployed  
8
119  
7
6.3  
93.0  
5.5  
Purpose of Travel  
Travel Party Type  
Leisure / Vacation  
Business / Meetings  
Visiting Friend / Relatives  
Alone  
2
1.6  
6
4.7  
Family  
57  
33  
32  
5
44.5  
25.8  
25.0  
3.9  
Spouse  
Friends / Colleagues  
Below RM1000  
RM1001 RM2000  
RM2001 RM3000  
RM3001 and above  
Monthly Salary  
16  
36  
71  
12.5  
28.1  
55.5  
Table 4.1 illustrated that number of customers from Selangor clearly outnumbered their counterparts in quite  
comprehensively. Of 128 total respondents, 18.0 percent (n= 23) of them were from Selangor state. And  
following with Kelantan, 14.1 percent (n= 18) of respondent, 12.5 percent (n=16) from Terengganu state with  
the third higher respondent. State of Johor in number four higher with 10.2 percent (n= 13). And following with  
two states with equal respondent which is from Kedah and Pulau Pinang with total 7.8 percent (n= 10). 5.5  
percent (n= 7) of them were from Negeri Sembilan state. Following with state of Perak, Pahang and Wilayah  
Persekutuan is equal respondent 4.7 percent (n= 6). Follow by next state which is Perlis with 3.1 percent (n= 4)  
and Melaka with 2.3 percent (n= 3). Lastly, in the analysis the researcher gets 1.6 percent (n= 2) respondent from  
state of Sabah, Sarawak and from oversea which is Spain and Italy.  
The table also tell the study that respondents who aged 26-35 years old made up the largest group of respondents  
with whopping 43.0 percent (n= 55). At a glance, a premature assumption can be made regarding the dominance  
of this group of respondents. It can be said that majority of the customers who have experience visiting  
Perhentian Island and using hospitality services. In the second place is the 36-45 years old range, accounted for  
32.8 percent (n= 42), being too near with the largest group in this variable. It is then followed by respondent  
who fall under the 18-25 years old and 46-55 years old with have similar 10.9 percent (n= 14) of them, slightly  
above the number shown by those aged 56-65 years old in the survey which accounted for only 2.3 percent (n=  
3) from the total respondent. For the age 66-above don’t have received any respondent 0 percent (n= 0).  
The female respondents clearly outnumbered their counterparts in quite comprehensively. Of 128 total  
respondents, 51.6 percent (n= 66) of them were female. With a ratio of 51.6:48.4, it is obvious that male  
respondent group is similarity with the female group. Any conclusions on the numbers at this stage are immature  
for both groups. Over half of the respondents are married which accounted for 68.0 percent (n= 87) from the  
total 128 respondents. It is also apparent that the remaining balance of 32.0 percent (n=41) of them are single.  
Over half of the respondent are married which accounted for 68.0 percent (n= 87) from the total 128 respondents.  
It is also apparent that the remaining balance of 32.0 percent (n= 41) of them are single.  
The races of respondent are Malay which accounted for 70.3 percent (n=90) from the total 128 respondent,  
following in second part which is Chinese 17.2 percent (n= 22), third part which is Indian 10.9 percent (n=14)  
and lastly is other races 1.66 percent (n= 2). In the conclusion Malay race is dominant visited Perhentian Island  
with the large number of groups in this group variable. From the analysis, 57.8 percent (n= 74) ticked on  
employee answer in questionnaire. This figure is absolutely bigger than the other employment categories. The  
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number depicted by those in self-employed that ranked second in this section is also very small to be compared  
with the majority which only accounted for 23.4 percent (n= 30). It is trailed by 12.5 percent (n= 16) of  
respondent from student, somewhat smaller than the number of unemployed among respondent 6.3 percent (n=  
8).  
The table also explained that the purpose of travel at Perhentian Island, Terengganu dominant in largest number  
by leisure and vacation 93.0 percent (n= 119) of the respondent. Following on second ranked, the number is  
depicted by those in business and meeting on this section is also very small to be compared with the majority  
which only accounted for 5.5 percent (n= 7). It is trailed by 1.6 percent (n= 2) of respondent visiting friends and  
relatives. From the analysis, 44.5 percent (n= 57) visiting to Perhentian Island with family members. This  
number is dominant than other travel party type. Followed by spouse 25.8 percent (n= 33) and following by  
friends and colleagues is 2.5 percent (n= 32). Sitting at the bottom of the rank is the respondents that have visiting  
Perhentian Island an alone with 4.7 percent (n= 6).  
The table suggest that respondents that have income from RM3001 and above made up the largest group during  
the data collection with 55.5 percent (n= 71) of the respondents. The respondents that have income from RM2001  
to RM3000 meanwhile has the second largest number of respondents accounted for 28.1 percent (n= 36) of the  
total number. Respondents that have income RM1001 to RM2000 made up the third largest group during the  
data collection with 12.5 percent (n= 16) of respondents. Sitting at the bottom of the rank is the respondents that  
have income below than RM1000 with 3.9 percent (n= 5).  
Reliability Test  
The results of the data reliability test showed that all variables had Cronbach’s alpha greater than 0.60  
(Sujarweni, 2018), which means that there are no unreliable questions from each variable, so the whole is  
declared consistent. Reliability of a measure shows that the questionnaire is free from error, reliable and durable  
and also stable across the various items in the scale. They also noted that reliability of data can be tested using  
Cronbach’s alpha for the consistency of the questionnaire and to see whether the items measuring the concept  
hang together as a set. The result gathered from the reliability test can be view in a form of coefficient.  
Table 5: Alpha Co-efficient of Internal Reliability  
Variable  
n
15  
7
α
Service Quality  
Customer Satisfaction  
Customer Loyalty  
Overall  
.905  
.901  
.826  
.932  
7
29  
Based on table, the overall alpha coefficient of the instrument was reported at 0.932. The breakdown of the result  
based on the section meanwhile suggest that Section C (customer loyalty) attained the lowest Cronbach value  
0.826. Section B (service quality dimension) on the other hand shows the highest value among all section at  
0.905. Finally, followed by Section C (customer satisfaction) with a value of 0.901.  
Validity Test  
The validity test was carried out on 29 (twenty-nine) question items consisting of four (4) variable tangible  
question items, three (3) variable empathy question items, three (3) variable reliability question items, three (3)  
variable assurance question items, two (2) variable responsiveness question items, seven (7) customer  
satisfaction variable question items and seven (7) customer loyalty variable question items. From the results of  
the validity test of twenty -nine (29) question items there are three (3) question items are invalid because they  
have a factor load value below 0.6 where the hotel does not have modern equipment and the hotel does not show  
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success or awards received by any organization or applicable statutory bodies. And high price offers also cause  
customers to switch to competitor islands that offer low and affordable packages or prices. So that the invalid  
ones are eliminated for further research (Hair., Joseph, Black, Jabin, & Anderson, 2014)  
Table 6: Validity Test  
Variable  
Loading Factor  
Conclusion  
Not Valid  
Valid  
The hotel has modern looking equipment  
The hotel provides clean and comfortable rooms  
The hotel has swimming pool, sauna, and health club  
.516  
.620  
.671  
.765  
Valid  
The hotel has adequate fire safety facilities and  
instructions  
Valid  
The hotel gives its customers individuals attention  
.798  
.720  
Valid  
Valid  
Staff of the hotel understand the specific needs of  
their customers  
Staff of the hotel have customers best interest at heart  
.764  
.811  
Valid  
Valid  
Staff of the hotel are able to provide service as  
promised  
Staff of the hotel are dependable in handling  
customers service problems  
.775  
.564  
.803  
Valid  
Not Valid  
Valid  
The hotels keep customer informed of the  
performance of services  
Staff at the hotel are consistently and friendly with  
customers  
The hotel providers a safe environment to stay in  
.668  
.798  
Valid  
Valid  
Staff of the hotel have knowledge to answer  
customer’s request  
Staff at the hotel are ready to respond to customers’  
request  
.705  
.776  
Valid  
Valid  
Staff at the hotel are always willing to help  
customers  
I will still go to Perhentian Island  
.641  
.837  
.827  
.741  
Valid  
Valid  
Valid  
Valid  
I will recommend this Perhentian Island to others  
I will go to Perhentian Island next time  
I will buy Perhentian Island services  
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I will recommend my friends and relatives to visit  
Perhentian Island  
.816  
.628  
.669  
.829  
.723  
.597  
.804  
.785  
Valid  
Valid  
I feel that Perhentian Island's performance is very  
strong  
I will consider Perhentian Island as my first choice  
when I make a vacation plan  
Valid  
I will pay any price requested this Perhentian Island  
even if the prices of other Island less  
Valid  
I will not deal with any competitor island offers  
lower prices  
Valid  
Low price in competitors island will not lead me to  
switch to it  
Not Valid  
Valid  
The price does not represent any importance to me  
when dealing with Perhentian Island  
I will not switch to any competitor island if I face a  
problem in dealing with this island complaint  
behaviour  
Valid  
If I have problem in dealing with this island, I will  
not move my complaint to customers close to me  
.715  
.717  
Valid  
Valid  
If I have a problem in the service provided, I will  
transfer them directly to the operators  
Descriptive Test  
The descriptive statistics on the mean score and standard deviation on every item in the questionnaire will be  
discussed based on the constructs measured in this study in a sequential order; Service Quality Dimension,  
Customer Satisfaction and Customer Loyalty. Therefore, the service quality level among the study respondents  
will lead the discussion in this section.  
Service Quality  
It is worth to reiterate the definition of optimism in this section based on discussion in the literature review. It is  
understood that as overall customer evaluations and judgments regarding the excellence and quality of service  
delivery in the marketplace. The table below presents the mean score and the standard deviation for items under  
the service quality dimension based on data collected for this study.  
Table 7: Tangible  
No. Items  
N
M
S.D  
1
2
3
The hotel has modern looking equipment  
128  
128  
128  
3.45  
3.61  
2.94  
1.010  
1.037  
1.489  
The hotel provides clean and comfortable rooms  
The hotel has swimming pool, sauna, and health club  
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4
The hotel has adequate fire safety facilities and  
instructions  
128  
3.03  
1.403  
From the table tangible, it can be suggested that most of the answers learn towards the third points in the scale  
(moderate) with the highest score shown by the first item where respondents believed that it is hotel supplier  
provides clean and comfortable rooms for customer (M= 3.61; S.D= 1.037). it is then followed closely by the  
score shown by item number one (M= 3.45; S.D= 1.010) with a margin of only 0.21, expressing their opinion  
that the hotel has a modern looking equipment. Not only that, but they are also very verified with adequate fire  
safety facilities and instructions on the scale (M= 3.03; S.D= 1.403). The lowest score was identified on the item  
‘The hotel has swimming pool, sauna, and health club’ (M= 2.94; S.D= 1.489).  
On conclusion, the customers feel satisfied with the facilities provided by the hotel. what can be concluded, the  
hotels in Perhentian Island still maintain old and non-modern design features, only a few hotels have upgraded  
their facilities to new buildings that look modern and have swimming pool facilities, health centres, emergency  
equipment such as fire extinguisher and others.  
Table 8: Empathy  
No. Items  
N
M
S.D  
1
2
The hotel gives its customers individuals attention  
128  
128  
3.18  
3.09  
1.232  
1.375  
Staff of the hotel understand the specific needs of  
their customers  
3
Staff of the hotel have customers best interest at heart 128  
3.05  
1.443  
From the table empathy, with the highest score shown by the first item where respondents are satisfied when  
staff of hotel gives an attention to individuals customer (M= 3.18; S.D= 1.232). not only that, in the second  
ranking, staff hotels shown the understand what a specific need by a customer (M= 3.09; S.D= 1.375). it is  
followed closely by the score shown by item number three (M= 3.05; S.D= 1.443) with a margin 0.04, the staff  
hotel has customers best interest at heart.  
On conclusion, Attention to customer needs is a priority in service management in a hotel or hospitality industry.  
Employees should focus on the needs of customers staying at the premises even if the staff do not understand  
the needs of the customers. With the presence of concern in each individual employee, this can reflect the  
employee's concern for the customer.  
Table 9: Reliability  
No. Items  
N
M
S.D  
Staff of the hotel are able to provide service as  
promised  
128  
3.55  
1.216  
1
2
3
Staff of the hotel are dependable in handling  
customers service problems  
128  
128  
3.82  
3.18  
1.187  
1.487  
The hotels keep customer informed of the  
performance of services  
From the table reliability, its shows the staff of hotel are dependable in handling customers service problems  
(M= 3.82; S.D= 1.187). It is then followed by the score shown by item number two (M= 3.55; S.D= 1.216), staff  
hotel can provide a service as a promised to customer. The lowest score was identified on the items ‘the hotels  
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keep customer informed of the performance of services’ which is in a way physical or virtual (M= 3.18; S.D=  
1.487).  
On conclusion, when there is a problem faced by the customer, the staff can deal with it well and solve the  
problem efficiently. The level of dealing with problems is still at a moderate level and does not meet the  
satisfaction level of customers who visit Perhentian Island. The workers need to play a role in solving the  
problem as soon as possible and act quickly in dealing with it.  
Table 10: Assurance  
No. Items  
N
M
S.D  
Staff at the hotel are consistently and friendly with  
128  
4.05  
1.128  
1
customers  
The hotel providers a safe environment to stay in  
128  
128  
3.77  
4.03  
1.140  
1.034  
2
3
Staff of the hotel have knowledge to answer  
customer’s request  
From the table assurance, with the highest score shown by the first item where respondents satisfied a staff hotel  
are consistently and friendly with the customers (M= 4.05; S.D= 1.128). It is followed closely by the score shown  
by item number three (M= 4.03; S.D= 1.034) with a margin of only 0.02, expressing the staff hotel have some  
knowledge to answer customer’s request. The lowest score was identified on the item number two which is the  
hotel providers a safe environment to stay in on their premise area (M= 3.77; S.D= 1.140).  
On conclusion, the staff shows availability in serving customers with a good and friendly attitude. Having  
extensive knowledge is also very important about the environment of Perhentian Island and the hotel in  
answering questions from customers who visit there. The employees will be able to answer questions from  
customers when asked about the hotel and a place.  
Table 11: Responsiveness  
No. Items  
N
M
S.D  
Staff at the hotel are ready to respond to customers’  
request  
128  
4.05  
1.100  
1
Staff at the hotel are always willing to help customers 128  
4.13  
1.004  
2
From the table responsiveness, the highest mean score was attained by the second point which is staff at the hotel  
are always willing to help customers (M= 4.13; S.D= 1.004). It is followed by the score shown by item number  
one (M= 4.05; S.D= 1.100), staff at the hotel are ready to respond to customer’s request.  
On conclusion, the employees at the Perhentian Island hotel are very helpful in meeting the needs of customers  
who come to visit there and are ready to answer all questions from customers. The availability of the employees  
can satisfy the customers in their vacation and about the island.  
Customer Satisfaction  
Table 12: Customer Satisfaction  
No. Items  
N
M
S.D  
I will still go to Perhentian Island  
128  
4.13  
0.942  
1
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I will recommend this Perhentian Island to others  
I will go to Perhentian Island next time  
I will buy Perhentian Island services  
128  
128  
128  
128  
4.30  
4.11  
3.89  
4.26  
1.039  
1.117  
1.225  
1.096  
2
3
4
5
I will recommend my friends and relatives to visit  
Perhentian Island  
I feel that Perhentian Island's performance is very  
strong  
128  
128  
4.03  
3.02  
1.129  
1.242  
6
7
I will consider Perhentian Island as my first choice  
when I make a vacation plan  
From the table, it can be suggested that most of the answers lean towards the three and four points in the scale  
(agreed) with the highest score shown by the second item where respondents will recommend the Perhentian  
Island to others (M= 4.30; S.D= 1.039). It is followed closely by the score shown by item number five (M= 4.26;  
S.D= 1.096) with the margin of only 0.04, the respondent also will recommend to their friends and relatives to  
visit Perhentian Island. In the third rank, probability the customer will still go to Perhentian Island for the next  
trip (M= 4.13; S.D= 0.942). It is followed closely by the score shown by item number three (M= 4.11; S.D=  
1.117) with the margin only 0.02, the customer will come against for the next time. The finding is further  
strengthened by the mean score shown by the last item (M= 4.03; S.D= 1.129) where the respondent feel the  
Perhentian Island performance is very strong and natural island. Not only that, but they are also will buy the  
Perhentian Island services (M= 3.89; S.D= 1.225). The lowest score was identified on the item ‘I will consider  
Perhentian Island as my first choice when I make a vacation plan (M= 3.02; S.D= 1.242).  
Customer Loyalty  
Table 13: Customer Loyalty  
No. Items  
N
M
S.D  
I will pay any price requested this Perhentian Island  
even if the prices of other Island less  
128  
2.50  
1.310  
1
2
3
4
5
I will not deal with any competitor island offers  
lower prices  
128  
128  
128  
128  
2.66  
2.59  
2.59  
2.67  
1.263  
1.313  
1.343  
1.317  
Low price in competitors island will not lead me to  
switch to it  
The price does not represent any importance to me  
when dealing with Perhentian Island  
I will not switch to any competitor island if I face a  
problem in dealing with this island complaint  
behaviour  
If I have problem in dealing with this island, I will  
not move my complaint to customers close to me  
128  
128  
3.51  
4.30  
1.453  
1.082  
6
7
If I have a problem in the service provided, I will  
transfer them directly to the operators  
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From the table customer loyalty, the above results suggest that the respondents showed some not satisfied with  
the service provided at Perhentian Island and for the loyalty back to Island is low. Firstly, if customer faces with  
the problem in the service provided, the customer will transfer that’s problem to the manager or hotel operator  
which is staff on duty at that’s time (M= 4.30; S.D= 1.082). Based on their experience, they will not move a  
problem or complaint to others customer nearby when dealing with this island (M= 3.51; S.D= 1.453). The third  
item in the table suggest that some of customer will not switch to any competitor island if them have problem in  
dealing with island complaint behaviour from others customer’s (M= 2.67; S.D= 1.317). It is then followed  
closely by the score shown by item number two (M= 2.66; S.D= 1.263) with a margin of only 0.01, expressing  
their opinion that will not deal with any competitor island which offer more cheaper price. Based on their  
experience, the low price in competitors island will not lead them to switch off others island. The four items in  
the table suggest that most of respondent show a similar magnitude of satisfaction level with the third item (M=  
2.59; S.D= 1.343), expressing their opinion, some of they have a good perception which is the price does not  
represent any importance when dealing with Perhentian Island. With the lowest mean score recorded (M= 2.50;  
S.D= 1.310), some of the respondents will pay any price charged by Perhentian Island service even the price of  
other island is more less.  
Correlation Analysis  
Pearson correlation is a test of relationship between variables which measures the strength and direction of linear  
relationship between pairs of continuous variables. By extension, the Pearson Correlation evaluates whether  
there is any statistical evidence for a linear relationship among the same pairs of variables in the population,  
represented by a significant correlation coefficient, p (“rho”). The Pearson Correlation is a parametric measure.  
Correlation coefficients “r” value should be at least at 0.4 or the relationship should be at moderate level to  
ensure that the hypothesis is accepted according to Guilford and Ruchter.  
Table 14: Relationship between Service Quality Dimensions and Customer Satisfaction  
VARIABLE  
CUSTOMER SATISFACTION  
r Value  
0.488  
0.235  
0.485  
0.673  
0.650  
p Value  
0.000  
0.000  
0.000  
0.000  
0.000  
CONCLUSION  
Ho1 was supported  
Ho2 was rejected  
Ho3 was supported  
Ho4 was supported  
Ho5 was supported  
Tangibles  
Empathy  
Reliability  
Assurance  
Responsiveness  
Table 14 presented the analysis testing result of coefficient of determination and the analysis result of the Pearson  
correlation for service quality dimensions to the customer satisfaction. The table shows that there is a significant  
and average relationship between tangibles, reliability, assurance, and responsiveness with customer satisfaction  
which is more than 0.40; correlation is significant at the 0.01 level on p value. However, on variable empathy  
not significant with customer satisfaction its cause less than 0.4 correlation coefficients, and the hypothesis was  
rejected. In conclusion, service quality dimension has close relationship with the customer satisfaction, however  
only one variable not close relationship but it can improve for the future by hotel operator to make customer  
satisfied with the service provided.  
Table 15: Relationship between Customer Satisfaction and Customer Loyalty  
VARIABLE  
CUSTOMER LOYALTY  
r Value  
p Value  
CONCLUSION  
Page 1160  
0.578  
0.000  
Ho6 was supported  
Customer Satisfaction  
Table 15 presented the analysis testing result coefficient of determination and the analysis result of Pearson  
correlation for customer satisfaction to the customer loyalty. Findings from the table shows that there is a  
significant and average relationship between customer satisfaction with the customer loyalty which is more than  
0.40; correlation is significant at the 0.01 level on p value. In conclusion customer satisfaction have close  
relationship with the customer loyalty and customer will revisit again to Perhentian Island for the next trip or  
vacation.  
DISCUSSION AND CONCLUSION  
Introduction  
This study was set out to examine the effect of hotel service quality on customer satisfaction and implications  
for customer loyalty in Perhentian Island, Terengganu. Apart from analysing the state of service quality  
dimension and customer satisfaction, the study has also sought out to examine the effect of both variables  
towards customer satisfaction and customer loyalty in Perhentian Island. This chapter elaborates and discusses  
the study from chapter one until the end of chapter four. The problems, research objectives and research  
questions of the study concluded in this chapter, in addition, the discussion will include the implications as well  
as limitations of the study. Then followed by some recommendations and suggestions based on the findings of  
future studies as well further improvements of the study. At this point, it is worth to reinstate that the study  
sought to answer several research questions:  
RQ1:  
RQ2:  
What is the effect between SERVQUAL dimensions and customer satisfaction in Perhentian Island.  
What is the effect between customer satisfaction and customer loyalty in Perhentian Island.  
FINDINGS AND DISCUSSIONS  
This section will thoroughly discuss on the findings that have been gathered in Chapter 4. Discussions start with  
the effect of between service quality dimensions and customer satisfaction in Perhentian Island. Next, the  
discussion will continue the effect between customer satisfaction and customer loyalty in Perhentian Island,  
Terengganu.  
The effect between SERVQUAL dimensions and customer satisfaction in Perhentian Island.  
It is already known that the first research objectives addressed the relationship between service quality  
dimensions and customer satisfaction in Perhentian Island after their experience visiting that’s place. This  
research question is represented by the first hypothesis until fifth hypothesis which is, H1; positive relation  
between tangible and customer satisfaction, H2; positive relation between empathy and customer satisfaction,  
H3; positive relation between reliability and customer satisfaction, H4; positive relation between assurance and  
customer satisfaction and H5; positive relation between responsiveness and customer satisfaction.  
In term of H1, the first hypotheses, tangible has significantly predicted customer satisfaction (β is weight 0.488,  
p < 0.01) this indicates that tangible have a positive relationship with customer satisfaction. Therefore, based on  
this result the first hypotheses were supported. According to guest impressions tangible can be explained as  
physical facilities, equipment, and appearance of hotel building. Guest might evaluate hotel facilities and design,  
visibility of equipment Tangible factor gives physical representation of pictures of the services that customer,  
especially new customer. Most customers are very satisfied with the products and services provided by the hotel  
in Perhentian Island. The hotel provides guests with modern -looking appliances. In addition, some hotels  
provide clean and comfortable rooms and have a swimming pool, sauna, and health club for customers. Most  
importantly, safety instructions as well as fire equipment are supplied in the event of an emergency or untoward  
incident. It is the role of the hotel to prioritize the comfort and safety of the guests staying at the hotel. However,  
some hotels do not provide emergency facilities to guests staying at the hotel.  
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In term H2, the second hypotheses, empathy has not significantly predicted customer satisfaction (β is weight  
0.235, p < 0.01) this indicates that empathy does not have positive relationship with customer satisfaction.  
Therefore, based on this result the second hypothesis was rejected. Regardless of second hypothesis results which  
did not prove that empathy has a positive impact. According to the research data, guests perceive a low degree  
of interaction with staffs in hotels. The hotel staff reflects a capability to fulfil guests concerns in terms of their  
needs, for instance, individualized attention and having guests’ best interest at heart.  
In term H3, the third hypotheses, reliability has significantly predicted customer satisfaction (β is weight 0.485,  
p < 0.01) this indicates that reliability have a positive relationship with customer satisfaction. According to the  
research data, the customer is satisfied with the providing service as promised, hotel’s staff are dependable in  
handling customers service problem and the hotels keep customer informed of the performance of services.  
Reliability reflects the service providers ability to perform service dependably and accurately.  
In term H4, the fourth hypotheses, assurance has significantly predicted customer satisfaction (β is weight 0.673,  
p < 0.01) this indicates that assurance have a positive relationship with customer satisfaction. Therefore, based  
on this result the fourth hypotheses were supported. Assurance is another service quality factor emphasized by  
guest in hotels. The degree to which guests are feel confidence and trust hotel service relies on the service quality  
provided by hotel staff. And hotels staff at the hotel are consistently courteous and friendly with customers. The  
customer is satisfied with the knowledge of staff to answer the questions and requested by.  
Lastly, in term H5, the fifth hypotheses, responsiveness has significantly predicted customer satisfaction (β is  
weight 0.650, p < 0.01) this indicates that responsiveness have a positive relationship with customer satisfaction.  
Therefore, based on this result the fifth hypotheses were supported. Responsiveness is referring to the hotels  
readiness to settle happened issues and availability to provide fast service. It is important for hotel staff are ready  
to respond customers’ requests and the hotel staff are always willing to help customers. Front office, waitress,  
housekeeping, and maintenance staff are having to be very well trained as well as should be responsive towards  
customers.  
Conclusion, the findings of this study are in line with previous studies that found a significant relationship  
between tangible dimensions and customer satisfaction. This study supports the study of Maziah, Siti Syuhada,  
& Sabri (2016) who stated that the tangible dimension has a significant and positive relationship with customer  
satisfaction, further supporting the first research hypothesis. The empathy dimension shows that there is a non-  
significant positive relationship with customer satisfaction. This shows that the concern shown to customers is  
less than satisfying customer satisfaction. This study supports the study of Muhamad Saufiyudin, Hashim, &  
Rozila (2016) who showed that the empathy dimension has a non-significant relationship with the factor that  
most affects customer satisfaction, further not supporting the second research hypothesis.  
Next, while the third hypothesis of this study is positive relation between the dimensions of reliability and  
customer satisfaction in Perhentian Island. The results of the study show a significant positive relationship  
between the dimensions of reliability and customer satisfaction. The findings of this study also support the third  
research hypothesis and support the findings of Minh, Ha, Anh, & Matsui (2015) who found a significant positive  
relationship between the dimensions of reliability and customer satisfaction. Next, the findings of the study show  
that there is a significant positive relationship between the assurance dimension and customer satisfaction. This  
shows that hotel operators in Perhentian Island who can guarantee that the services provided are as promised  
can increase customer satisfaction. The findings of this study also support the fourth research hypothesis and  
support the study of Chen-Ju & Wei-Chin (2017).  
Finally, while the fifth hypothesis is positive relation between responsiveness and customer satisfaction in  
Perhentian Island. The results of the study show that there is a significant positive relationship between the  
dimensions of responsiveness and customer satisfaction. This means that the entrepreneur's willingness to help  
visitors and provide services quickly, can give a good perception to customers and this leads to customer  
satisfaction. This study supports the study of Umesh (2014) who found that the responsiveness dimension has a  
significant relationship with customer satisfaction and supports the fifth research hypothesis.  
Page 1162  
The effect between customer satisfaction and customer loyalty in Perhentian Island.  
It is already known that the second research objectives addressed the relationship between customer satisfaction  
and customer loyalty in Perhentian Island after their experience visiting that’s place. This research question is  
represented by the six hypothesis which is, H6: positive relation between customer satisfaction and customer  
loyalty.  
In term H6, the six hypotheses, customer satisfaction has significantly predicted customer loyalty (β is weight  
0.650, p < 0.01) this indicates that customer satisfaction have a positive relationship with customer loyalty.  
Customer satisfaction is dependent on the quality of service provided and in turn will impact the customer loyalty  
to come back at another time. But various effects can be observed when customer satisfaction is below an  
unsatisfactory level. Most customers who visit Perhentian Island will go there and recommend to family  
members, friends and people around to visit this place. There are also some respondents who will buy packages  
at Perhentian Island even though the prices offered vary due to the loyalty of their customers still visiting the  
island. Through observation, the average respondent is satisfied with the performance of Perhentian Island and  
makes this place a top choice as a top destination to travel.  
It can be concluded that there is a positive relationship between customer satisfaction and customer loyalty, and  
that a rise in customer satisfaction enhances customer loyalty favourably. In parallel research, it has been  
discovered that customer satisfaction is one of the most important variables in the development of customer  
loyalty, and that a rise in customer satisfaction has a favourable effect on customer loyalty (Cheng et al., 2019).  
Summarized Results for Hypotheses  
Table 0.0 presents a summary of the hypotheses tested. As presented in table 0.0, the findings of this study  
supported all the proposed six hypotheses.  
Table 16: Summarized for hypotheses  
Hypotheses tested  
Result  
Positive relation between Tangible and customer satisfaction.  
Supported  
Not Supported  
Supported  
Supported  
Supported  
H1  
H2  
H3  
H4  
H5  
Positive relation between Empathy and customer satisfaction.  
Positive relation between Reliability and customer satisfaction.  
Positive relation between Assurance and customer satisfaction.  
Positive relation between Responsiveness and customer  
satisfaction.  
Positive relation between customer satisfaction and customer  
loyalty.  
Supported  
H6  
Limitations and Recommendations for Future Research  
Although the results have contributed further in understanding the effect of hotel service quality on customer  
satisfaction and implications for customer loyalty in Perhentian Island, Terengganu, there are a few limitations  
faced by the researcher in completing this study. The first and the most important is to find any respondent  
willing to answer the survey because some of them not interest to answer it. Therefore, the researcher has  
difficulties in determining the correct sample size for use in this study. Thus, it is important future research needs  
to use size that covers range of demographic environment.  
This study investigated overall service quality dimensions, customer satisfaction and customer loyalty. Given  
that this research is cross sectional in nature, it can assume that the respondents’ state of satisfaction and loyalty  
Page 1163  
might eventually change overtime. Maybe a longitudinal study on this topic will allow future researchers to  
explore the changes among the respondents so that interpretation and the implications of the results will be more  
applicable.  
CONCLUSION  
Guided by the results of the study describes the dimensions of service quality, customer satisfaction and customer  
loyalty in Perhentian Island. The study can be summarized, the first research question is supported, when the  
results show the quality of service has an impact on customer satisfaction. The second research question also  
supports when the results shown have an impact between customer satisfaction and customer loyalty in  
Perhentian Island. The fact that the results suggest that the mediating variables (customer satisfaction) played  
roles on the intended relationship enhances the value of the study.  
The findings of this present study are believed to be significantly contributed to both theoretical aspects which  
are interest to industrial and academic aspect that are relevant to hospitality industry. In terms of industrial  
perspective, this research can provide a wider picture of the manager on issues that will affect customer  
satisfaction and customer loyalty. This allows them to be ahead of their competitors. Besides, this research also  
helps the organization to maintain and even improve the quality of services.  
Employers must pay attention to every aspect, in addition to the importance of advertising and promotion, the  
quality of staff reliability plays an important role as a driver to increase the level of customer satisfaction in  
service companies.  
Responsiveness describes the strongest impact on customer satisfaction with the highest beta coefficient. Where  
the staff always answers questions from customers and is always willing to respond to requests given by each  
customer.  
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APPENDICES  
Assurance Dimensions  
Responsiveness Dimensions  
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