The Influence of Perceived Value Towards Customer Satisfaction in Hostel Business: A Case of Young Adult Tourist in Indonesia

The Influence of Perceived Value Towards Customer Satisfaction in Hostel Business: A Case of Young Adult Tourist in Indonesia

Anggraeni Permatasari (Faculty of Business, President University, Indonesia)
DOI: 10.4018/IJTHMDA.2020070102
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Abstract

Perceived value is one of the elements that can influence customer satisfaction in the hotel and hospitality industry. In order to re-create the effective strategies, hostel business needs to understand more about factors that influence customer satisfaction. To identify which one is more preferable, this research measured the influence of perceived value, consisting of four aspects, which are image, price, technical dimension, and functional dimension. This study uses quantitative method through multiple linear regression. Data was collected by spreading questionnaires; 300 respondents have participated in this research. This research focused on domestic young adults in Indonesia who already had experience in hostel service as respondents. This study found that perceived value in the form of price is the most influential aspect that influences young adult tourist satisfaction towards the hostel business.
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2 Literature Review

2.1 Customer Satisfaction

Customer satisfaction is defined as an emotional response to the experiences related to specific products or services purchased, retail outlets, or even patterns of behavior, as well as the overall market (Tjiptono, 2008). Customer satisfaction is determined by the quality of the phenomenon in service in the field. Customer satisfaction is an important element in service delivery because understanding and satisfying customers' needs and wants can generate increased market share from repeat custom and referrals (Chitty, Ward & Chua, 2007). Customer satisfaction is determined by the quality of the phenomenon in service in the field. “The satisfaction judgment is related to all the experiences made with a certain supplier concerning his products, the sales process, and the after-sale service” (Gandhi and Kang, 2011).

Furthermore, Kaveh, Mosavi, and Ghaedi (2012) determine the level of customer satisfaction is influenced by five factors: product quality, service quality, emotional factors, the price, and the cost and ease of getting your product /service.

2.2 Perceived Value

The concept of perceived value has recently gained and popular in the business environment. Perceived value has an effect on consumer behavior and provides strategic implications for the success of companies. According to Dhillon (2013), a perceived value defined as the benefits of customers believe, what are they receive relative to the costs associated with the consumptions. For a service organization, it is important to know how their services are perceived by their customers. Customer Perceived value has been conceptualized in the literature as a trade-off made by a customer between the costs and benefits of a particular product or service. (Kaveh, Mosavi, and Ghaedi, 2012). Hence, perceived value is claimed to be a major tool to help the service company to gain a better competitive position in the market.

In perceived value, the company should know who their customers and know what products or services that customer needs. Consumers can select the best among the available options. This research is using four aspects of perceived value towards customer satisfaction such as image, technical dimension, functional dimension and price as the independent variables (Figure 1).

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