1

CHAPTER 1

INTRODUCTION

Background of the study

Customer loyalty is one of the most important issues

faced by businesses today and became the key strategic goal

for many service enterprises, including hospitality

businesses. Hotel and resort owners and managers realize

that loyal customers are worth a great deal more

than just casual customers(Mattila 1998) . Customer

loyalty leads to higher customer retention rate and to

continuous business success even in situations where failure

to satisfy customers would normally cause an early

termination of business. Therefore, the Sagay Beach Resorts

operation must focus not only on attracting first-time

customers but also on developing long term relationship with

customers.

Competition seems increasing fierce. Based on MKG

Hospitality’s 2014 Global Hotel Rankings, branded hotels

grew by 3.2 % in 2013. In 2014, most major hotel groups grew

between one and three percent. With this huge number of

competition and the services provided were almost similar to

each another, customer loyalty has become one of crucial

aspects of sustainable competitive advantage. This is

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because customers’ loyalty recognized as one of the

effective ways to maintain and retain the customers.

The purpose of this study is find out the factors

causing customer loyalty in Sagay Beach Resorts and to

provide better understanding on Satisfaction, Commitment,

Trustworthiness, Perceived value and Behavioral intension on

customer loyalty. Because of tight competition, loyalty has

become important to business and service industries. Such

concern leads us to conduct studies or researches on how to

improve loyalty status of the costumers in Sagay Beach

Resorts.

Statement of the Problem

The purpose of the study was to determine the level of

importance of the factors causing customers loyalty of Sagay

Beach Resorts.

The results of the study will serve as basis for a

proposed program enhancement of the Sagay Beach Resorts.

Specifically, it sought answers to the following

questions:

1. What is the socio demographic profile of Sagay Beach

Resorts guest in terms of:

1.1 Sex,

1.2 Age,

1.3 Frequency of visit, and

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1.4 Monthly Income?

2. What is the level of importance of the factors

causing customers’ Loyalty of Sagay Beach Resorts in terms

of: Satisfaction, Trustworthiness, Perceived Quality,

Commitment and Behavioural Intension?

3. Is there a significant difference in the level of

importance of the factors causing customers’ loyalty in

Sagay Beach Resorts in terms of Satisfaction,

Trustworthiness, Perceived quality, Commitment and

Behavioural Intension and when grouped according to the

identified socio-demographic profile?

Hypothesis

Based on the aforesaid research problems, the following

research hypotheses were formulated.

There is no significant difference in the level of

importance of the factors causing customers loyalty in Sagay

Beach Resorts in terms of Satisfaction, Trustworthiness,

Perceived Quality, Commitment and Behavioural Intension sand

when grouped according to the identified socio-demographic

profile.
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Conceptual Framework

This study was anchored on the different concepts and

theories related to factors causing customers loyalty in

Sagay Beach Resort.

The customer loyalty theory, based on the consideration

of some variable demographics, was developed over years of

research studying the habits of consumers. The theory

attempts to define what drives loyalty in customers and can

represent an effective tool for gaining and retaining your

hard-won patrons. Business owners who witness repeat

customers know on an intuitive level that customer loyalty

is an invaluable commodity. Incorporating the precepts of

the customer loyalty theory into daily dealings can

influence the creation of more business.

As pointed out in the introduction, tight competition

in businesses and service industries causes corporations to

seek loyalty from their customers. In this light, Daryl Ace

Cornell had conducted a research on customer’s loyalty among

selected standard hotels in Metro Manila. The purpose was to

find out the factors causing customer loyalty among Manila

Hotels with the end-view of coming up with marketing program

(Cornell, D. A. V. 2015:44)
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In this view study has adopted concerns from Rauyruen,

Miller (2007) and Elsevier (2008). This means that the

independent variables will be satisfaction, commitment,

trustworthiness, perceive quality, behavioural intension.

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Variable Satisfaction,
such as Trustworthiness,
Factors Sagay
sex, age, Perceived
Causing Beach
frequency quality,
Customer Resorts
of visit, Commitment and
Loyalty Enhancement
monthly Behavioural
salary intension

Figure 1.Schematic Diagram

Significance of the Study

This research study on Factors causing customer loyalty

in Sagay beach resorts, the result of this study may serve

as beneficial to the following:

1. To the Beach Resorts Management and Owners. This study

will find reasons for the increased customer defection in

the industry, thereby arming them with insights as to how

they craft their marketing strategy towards customer

retention and customer loyalty. In addition, it aids

management and owners in adjusting service system, design

elements and amenities to meet or even to exceed guest

demands.

2. Beach Resorts services users. To them, this study

will stimulate their awareness of customer loyalty,

which will lead to their heightened expectations from

Beach Resorts services providers. Thus they will likely

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patronize Beach Resorts which can establish strong

lasting bonds with them.

3. Employees. The findings of this study may serve as tool

to improve and enhance further the services offered to every

employee of the Beach Resorts.

4. NONESCOST Extension Program. The result of this

research study will serve as baseline data in coming _______

with extension program ________?

5. Researcher. The findings of this study may also provide

researchers with scientific data concerning customer

satisfaction in cooperative industry. It is extremely

important especially in establishing Beach Resorts.

6. Future Researcher. This research study could be used as

basis for similar studies that might be conducted at other

time and in other beach resorts. Pattern of similarities

might be observed and made off in any future plan regarding

the evaluation of beach resorts on services and offered.

Scope and Limitation

This study focused only on the level of importance of

the factors causing costumers’ loyalty in Sagay Beach

Resorts. The respondents of the study are the loyal

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customers who are visiting Sagay Beach Resorts for the

period of August 12 - September 12, 2017. The said also

cover the duration of the study. The result of the study

depends on how the respondents answer the questionnaires to

be distributed by the researchers.

Definition of Terms

The following terms used in the study were conceptually

and operationally declined to give better understanding as

applied to this research undertaking.

BEHAVIOURAL INTENSION. This is defined to capture

motivational factors that influence behaviour and can also

be a measure of how much effort someone is willing to exert

when performing a behaviour. (Fishbein and Ajzen, 1975).

As used in this study, it is referred to repurchase

intention and willingness of customer in Sagay Beach Resorts

to provide positive word of mouth regarding the

establishment.

CUSTOMER LOYALTY. A strong and deep commitment to

repurchase or continuous purchase of a preferred product or

service in the future which, despite potential or actual

environmental effects or marketing efforts of the rivals for

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changing the customer’s buying behavior, is a rebuy of the

same brand or brand series (Oliver, 1999).

As used in this study, it is referred to the strength

relationship between the costumers and Sagay beach Resort

for the purpose of repeating patronage.

COMMITMENT. This refers to the intention of one person

to maintain the relationship with others (Pritchard, Havitz,

& Howard, 1999).

As used in this study, the term referred to the

customers’ desire to continue and maintain a relationship in

Sagay Beach Resorts.

SATISFACTION. This refers to a person’s feeling or

emotional that perceived from their expectation and wish

(Hao, Yu, Law, & Fong, 2015).

As used in this study, it is the feeling of contentment

or fulfillment needs derived from the service providers to

customer in Sagay Beach Resort.

PERCEIVE QUALITY. This can be defined as judgment or

attitude of customers with regard to the overall outstanding

service (Parasuraman, Zeithaml, & Berry, 1988).

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As used in this study, it is referred to a major tool

to help the service provider of Sagay Beach Resorts to gain

a better competitive position in the market.

TRUSTWORTHINESS. This refers to the consumers willing

to believe their exchange partner with honesty and integrity

(Wang, 2009). This is built when customers do not hesitate

to believe in service provider on the organization’s

intensions and customers think that they will not

deliberately do anything to harm them.

As used in this study, it referred to the extent in

which the trustee's behaviour meets with the trustor's

expectations in a particular interaction.

CHAPTER II

REVIEW OF RELATED LITERATURE

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This chapter includes the review or related literature

and studies which the researchers have perused to shed light

on the topic under study.

Foreign literature

According to Palmatie, R.W from the book entitled

“Factors Influencing the Effectiveness of Relationship

Marketing” published 2006, customer loyalty broadly refers

to customer behaviours that indicate a desire to better an

on-going relationship with a company. The customer’s

willingness to purchase again from the company, having a

preference for the company, or recommending the company to

others could be indications to customers’ desires to remain

in a relationship with a company that demonstrates how much

a customer is related to a company. Loyal customers are

often worth the marketing effort, owing to their willingness

to buy additional products and to spread positive word of

mouth as well as their reliability as a source of continuous

revenues.

The programs of customer retention could lead to a

higher rate in buyer loyalty. Although that marketing

manager’s primary concern is maintaining and increasing

brand Loyalty, there is no guarantee for loyal buyers,

because today’s buyer might not be so in the future since

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loyalty is considered so transient. Therefore an important

performance evaluation for business is customer retention

/customer loyalty rate for it helps stimulate repeat

business.

According to the article of Teich, I. (1997) “Holding

on to customers: the bottom-line benefits of relationship

building”, loyalty is developed over a period of time from a

consistent record of meeting, and sometimes even exceeding

customer expectations claims that the cost of attracting a

new customer may be five times the cost of keeping a current

customer happy. Customer loyalty is very difficult to be

achieved. More unique ways are adopted to meet the ever

changing nature of the service industry. Additionally, time

constraints are most often a barrier to customer

satisfaction. Every organization in the market competes to

develop advanced methods to keep on track. Technology, for

example affects the service industry, since constantly

meeting customer satisfaction over a period of time is the

only way to achieve customer loyalty. To sum it up having a

loyal customer makes the work easier.

A loyal customer knows the business; he knows the

strengths and weaknesses and appreciates them. He comes

first and only buys from competitors when the customer is

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not given the right products and services. If they are

considering switching over often because of the price they

will tell us and give an opportunity to adjust the price or

offer as required instead of just informing that they are

leaving. If they are looking for a slightly amended product

or service, they approach us to find out whether we can

supply instead of them approaching alternative suppliers.

Loyal customers will develop a relationship with service

providers and help to become better by complaining when

things go wrong, praising if they are happy and generally

working together with us.

A loyal customer is more likely to forgive mistakes or

a crisis and therefore, is easier to retain in the long

term. Based on all the above considerations, it is clear

that loyal customers play a vital role in any marketing

research.

According to Han & Ryu (2012) little empirical study

that has tested the effects of service encounter

performance, satisfaction, trust, commitment, and switching

costs on word-of-mouth intentions in a single framework.

Service failures are likely the main reason for customer

dissatisfaction and resulting negative word-of-mouth. Word

of-mouth is a very important factor in the restaurant

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industry. If the word-of-mouth is positive, it is

essentially free advertising. If it is negative, it can mean

that a business will lose a large number of potential

guests. Han and Ryu (2012) wanted to see if the perception

of switching cost had any effect on the word-of-mouth

intentions of the guests. Switching costs are “customers’

costs in changing services from one provider to another,

including not only monetary expenses but also nonmonetary

factors such as time, effort, and psychological costs.

In other words switching costs are how much it would

cost a guest to stop returning to this restaurant. The

results of study showed that the level of restaurant

customers’ trust and commitment is independent of any

perceived switching costs. For restaurants, creating ways to

enhance service performances will eventually contribute to

increase satisfaction, trust, commitment, and word-of-mouth

intentions from their guests. The restaurant’s efforts to

enhance the service encounter performance would contribute

to building social bonds between service employees and

individual customers, increasing customers’ confidence

level, enhancing their enduring desire to maintain a valued

14 relationship, and finally boosting their intention to

recommend and to spread positive word of-mouth.

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Foreign Studies

Airline industry in Malaysian conducted a research

about factors influencing Customer loyalty. In 2014, there

were three airline tragedies happened in Malaysia. MH370,

MH17 and QZ8501 tragedies have negatively affected the

customers’ confidence when using the airline services. This

had lead to indirect negative impact on the companies’

financial result and also caused them losing their customer

loyalty. Satisfaction, trust, commitment and perceived

quality are the major factors which may influence the

customer loyalty.

This research seeks to find out the dimensions of

relationship quality (satisfaction, commitment, trust and

perceived quality) that can affect customer loyalty in

airline industry in Malaysia. It would contribute to airline

marketers for developing better future strategies in order

to enhance customer loyalty in airlines industry. The

findings of the research recommended that Commitment, Trust

and Perceived Quality are all positively and significantly

influences on customers’, loyalty in airline industry in

Malaysia. However, satisfaction was found to have positive

but insignificant relationship with customer loyalty in

Malaysian airline industry.

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Reichheld, Markey and Hopton (2000) reveals that loyal

customers have lower price elasticity than non-loyal

customers, and they are willing to pay a premium to continue

doing business with their preferred retailers rather than

additional search costs. Some researchers indicated that

loyal customers are more likely to provide positive word-of

mouth. Customers’ loyalty to a service provider is

influenced by their overall satisfaction with the provider;

most of prior researchers have found qualified support for a

positive satisfaction-customer retention relationship.

Zoghbi-Manrique-de-Lara, Suárez-Acosta, & Aguiar-

Quintana (2014) studied the effect customer loyalty had on a

situation in which a service failure occurs. “Instead of

having satisfaction with service recovery directly

influencing guests’ supportive actions, loyalty acts as a

precondition to consumers’ positive citizenship behavior .A

guest’s reaction to the establishment’s complaint handling

can affect whether or not the customer may defect, may feel

increased loyalty and plan to return to the establishment,

or may share positive or negative word-of-mouth. They found

that loyalty did play a large part in how the guest

responded to the service recovery effort. This reflects well

on the establishment, because to have guest loyalty, it must

be earned through previous satisfactory visits. A loyal

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guest is more likely to return to the establishment, be

willing to forgive service errors, and the establishment to

others. Guest loyalty in the hospitality industry is a good

reflection on the entire operation of that establishment.

Local Literature

According to Michael LeBoeuf, Ph.D. from the book

entitled ‘’How to Win Customers and Keep Them for Life”

(2008), satisfied customer is the best business strategy of

all” but he also claimed that customer satisfaction may not

be enough to generate repeat sales. LeBoeuf cited

indifference as one of the driving reasons why satisfied

customers jump from one product or service to another.

Building customer loyalty is an integral key in achieving a

sustainable business. It is sometimes easy to equate

customer satisfaction with customer loyalty but in reality

they are not the same. Customer satisfaction may be

associated with a customer’s attitude at a particular.

It may be triggered by the customer’s positive shopping

experience or interaction with people connected to the

business. Customer satisfaction may be fleeting and changing

suddenly, whereas customer loyalty is the behavior that

drives the customers’ to make repeat purchases over a period

of time. Business experts claim that it is six to ten times

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more costly to work on gaining new customers than retaining

existing ones. Loyal customers’ spend more and they also

offer free promotion through word of mouth. A small business

may benefit more by focusing its efforts to build customer

loyalty.

Consumer loyalty has been considered as a significant

asset to an organization. Many previous loyalty studies

indicated that higher customer loyalty often results in

higher profitability and more stable customer based. Loyal

customers not only represent a stable source of revenue, but

also act as free word of mouth advertising channels that

informally link networks of friends, relatives, and other

potential consumers to a product or service up to 60% of

sales to new customers could be attributed to Word of Mouth

referrals. Furthermore, it is five to seven times more

lucrative to attract new customers than retain old ones.

Therefore, loyalty is considered as one of the major driving

forces in the competitive market.

According to Bitner, Booms, and Mohe (1994) in their

article for the Journal of Marketing, in service settings,

customer satisfaction is often influenced by the quality of

the interpersonal interaction between the customer and the

contact employee. They continue on to explain that customer

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oriented service organizations ultimate goal is “zero

defects.” This does not mean that everything needs to be

perfect from the moment that the guest walks in the door

until they leave; it just means that the guest is entirely

satisfied with all the services they received while at the

establishment. After taking into account, that not all

situations that arise are the fault of the server, they

decided that the best way to determine if a company is

customer oriented is to look at both sides of the service

interaction with the guest and the server.

They determined that most front-line employees are

very customer oriented and are focused on meeting and

exceeding the guest’s needs. They also determined that some

guests can create their own problems with unreasonable

demands or unruly conduct. The research was concluded by

making the observation that just because an establishment

has strong customer orientation does not 13 mean that they

must adapt the “customer is king” frame of mind.

Establishments must accept that there are some situations

that arise for which there simply is not an easy solution,

but still trying their hardest to meet and exceed all guest

expectations in the future.

Local Studies
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Based on the studies of Christian Hernandez,from the

article “A framework of dynamic CRM ”published 2003,

committed customers are profitable to an organization for

the long term. Customer commitment forms when a customer's

expectation is satisfied and the customer realizes fair

value from his/her relationship with the organization. From

an organization's perspective, this value reflects customer

equity, but from a customer's perspective, it represents the

customer's perceived value of the relationship. In order to

manage such a relationship successfully, it is necessary to

support diverse customer information – such as of-the-

customer, for-the-customer, and by-the-customer information.

A customer information system (CIS) plays the role of

boundary spanning that manages and distributes customer

information. But the gap between marketing and IT strategy

is a barrier in implementing a successful CIS. The CIS,

which includes the database, communication channel, and

decision model for relationship management, should be

designed to facilitate the two-way customer relationship

exchanges. This paper develops a framework of dynamic

customer relationship management, suggests the information

technology strategy to support the framework, and

illustrates the applicability of such framework and strategy

through a real business case.

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Based on the studies of The Graduate School, University

of Santo Tomas and ITHM, Far Eastern University Manila,

Philippines entitled CUSTOMER SATISFACTION AND LOYALTY IN

PHILIPPINE RESORTS, the increase in tourist arrivals during

the months of January to April 2012 which also contributed

to the economic growth of the country was also due to the

contribution of the resort industry that offers good

facilities, products and services both to foreign and local

market (Raquel, 2012). Majority of the visitors were from

South Korea, USA, Japan, and China who came to the country

to enjoy the holidays, shopping, dining, accommodation and

visit to relatives and friends.

They were able to know the country because of the

positive word-of-mouth marketing and recommendations by the

travel agents. Satisfaction is one of the reasons for the

continuous increase of tourist arrivals while positive word-

of-mouth marketing and recommendations by others can be a

sign of loyalty. However, though there was an increase in

tourist arrivals, based on World Travel and Tourism Council,

only 2% was contributed by the tourism industry to the total

GDP of the country. Moreover, the industry contributed 2% to

total employment in the country. The resort industry aims to

provide business, leisure and recreation to the guests.

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Customer satisfaction and customer loyalty can contribute to

financial performance of an industry (Gruca& Rego, 2005).

A satisfied and loyal guest can contribute to the

increase in market share of tourist arrivals in the

Philippines and sustainability of the industry. Moreover, an

increase in market share can have a domino effect in the

Philippine economy, social and environment. For this reason,

the resort industry should be able to focus and continuously

improve on the attributes that the guests need and

experience during their visit such as the physical

surroundings, products and services, technologies used and

human resource who serve them. However, the resort industry

should not stop in satisfying the needs of the guests since

a satisfied guest does not guarantee loyalty. Marketing can

reinforce their efforts in customer loyalty.

Chapter III

METHODOLOGY

This chapter provides a clear explanation on how the

research was carried out. It describes who is the target

respondent, what is the sample size and sampling Procedure,

when, where and how the data will be collected, how they
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were measured and what techniques were employed to examine

the data collected.

Research Design

The purpose of this research is to determine the level

of importance of the factors causing customer loyalty in

Sagay Beach Resorts. The researcher used the descriptive-

quantitative research design. The descriptive method of

research is describe as “how certain variables are related,

without providing an explanation for that

relationship...merely describes as a relationship in terms

of descriptive theory” (Bordens and Abbott, 1999, p.70).The

survey questionnaire was employed as means of gathering data

to determine the level of factors causing customer loyalty

Sagay Beach Resorts.

Respondent and Locale of the Study

This study was conducted to the establishments of Sagay

Beach Resorts and the respondents of the study are the 92

repeated guests who are visiting Sagay Beach Resorts in

Brgy. Old, Sagay City, Negros Occidental for the period of

August 12- September 12, 2017.

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Sampling Techniques

The sampling technique used in this study was

incidental. Incidental samples are obtained not by using any

sampling strategy but rather by selecting elements or

individuals who are conveniently available. It is a

theoretical type of researcher design based on the

collection designing and presentation of the collected data.

Instrumentation and Materials

The research instruments used in determining on the

level of importance of the factors causing customer loyalty

in Sagay Beach Resorts were adapted and modified taken from

the studies of factors influencing customer loyalty in

Airline industry Malaysian survey questionnaire and divided

into two parts.

Part I was designed to obtain data on the personal

information of the visitors/guest such as Sex, Age,

Frequency of visit and Monthly salary.

Part II contained the level of importance of the

factors causing customers’ loyalty such as Satisfaction,

Trustworthiness, Perceived quality, Commitment and

Behavioural intension. The following legend is basis for

interpreting data.

Legend: Verbal Interpretation

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4.20 – 5.0 Very High Level

3.40 – 4.19 High Level

2.60 – 3.39 Average Level

1.80 – 2.59 Low Average

1.00 – 1.79 Very Low Average

Data Gathering Procedure

A letter of permission from the thesis instructor and

adviser was given to the guest of Sagay Beach Resorts with

the approval of the management.

To assure fast and 100% retrieval and to answer

possible inquiries, the researchers distributed the

questionnaires personally. After retrieval, the data was

tallied, tabulated, analysed, and interpreted according to

the specific problems and hypothesis set forth in this

study.

Validity of the Instrument

The instrument was validated by the three experts in

the field of hospitality and tourism industry using the form

of Good and Scate criteria and it was validated with a mean

score of 3.5 interpreted as good.

Reliability of the Instrument

The properly validated survey questionnaire was

subjected to reliability test. Fraenkel and Wallen (2006)

 26

stated that the reliability of the instrument which the

degree of the scores obtained with an instrument is

consistent measures of whatever the instrument measures.

To find out the reliability of our questionnaire the

researcher was used the Cronbach Alpha. The validated

instrument tested the guest who were visiting in Escalante

Beach Resorts and yielded a result of 0.87 interpreted as

high correlation using the Cronbach Alpha formula.

Data Analysis

The statistical analysis used in the study on the level

of factors causing customer Loyalty in Sagay Beach Resorts.

For problem number 1, to determine the socio-

demographic profile of the respondents, the frequency and

percentage were employed.

For problem number 2, to determine the level of

importance of the factors causing customers’ loyalty of

Sagay Beach Resorts in terms of Satisfaction,

Trustworthiness, Perceived quality, Commitment and

Behavioural intension, standard deviation and mean were

used.

For problem number 3, to determine the significant

difference in the level of importance of the factors causing

customers’ loyalty in Sagay Beach Resorts in terms of

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Satisfaction, Trustworthiness, Perceived quality, Commitment

and Behavioural intension and when grouped according to the

identified socio-demographic profile, t-test and annova were

used.

CHAPTER IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

The data gathered by the researchers were organized and

statistically treated to obtain information that would

answer the specific problems of this research.

Profile of the Respondents of the Study

The major concern of this study was to determine the

profile of the respondents in terms of Age, Sex, Frequency

of Visit and Monthly. This is presented in the succeeding

tables.
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Table 1 shows the profile of the respondents according

to age.

Table 1. Distribution of Respondents According to Age

Age Frequency Percentage

25 years old 61 66
below
25 years old 31 34
above
Total 92 100

The table shows the age that out of 92 respondents who

were visiting in Sag ay Beach Resorts below 25 years old

got the score of 61 or 66 % out of 92 while above 25 years

old got the score of 31 or 34 % total of 92 or 100%.

Table 2 Distribution of Respondents According to Sex

Sex Frequency Percentage

Male 56 61
Female 36 39
Total 92 100

The Table 2 shows that 56 or 61 % of the respondents

are male and 36 or 39% are female. This indicates that there

are more male respondents in the study than female.

Table 3. Distribution of Respondents According to

Frequency of Visit

Frequency of
Visit Frequency Percentage
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2-3 19 21
4-6 9 9
7 above 64 70
Total 92 100

Table 3 indicates the frequency of visit. The result

shows that 64 or 70 % of the respondents visited 7 times and

above. This indicates that there were respondents visiting

Sagay Beach Resorts many times.

Table 4 Distribution of Respondents According to Monthly

Income
Monthly Income Frequency Percentage
Php. 1,000-10,000 59 64.1
Php 10,001 -20,000 18 19.6
Php. 21, 000 15 16.3
Total 92 100.0

Table 4 shows that 59 or 64.1 % of the respondents are

having an income of Php.1,000- 10,000, 18 or 19.6 has a

monthly income of 10,001-20,000 and 15 or 16.3 % are having

a monthly income of Php. 21,000 above.

Table 5. Level of importance of the Factors Causing

Customers’ Loyalty of Sagay Beach Resort.
Areas Std. Dev. Mean Interpretation
Satisfaction 0.76 3.28 High level
Trustworthiness 0.80 3.33 High level
Perceived Quality 0.76 3.22 High level
Commitment 0.78 3.27 High level
Behavioral 0.83 3.21 High level

Intension
Grand Mean 0.70 3.26 High level
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Table 5 reflects the Level of importance of the Factors

Causing Customers’ Loyalty of Sagay Beach Resorts when

assessed at different areas. The findings revealed that

Trustworthiness got highest mean score of 3.33 with standard

deviation of 0.80 interpreted as High level. This implies

that customers are expecting professional level of

integrity, honesty and discretion as the guest felt that

they are safe. As to Behavioural intension got the lowest

mean score of 3.21 with standard deviation of 0.83

interpreted as High level .This implies that customers are

expecting very highly satisfactory service in overall aspect

areas of the said resorts.Satisfaction area got a mean of

3.28 which is described as High level. It implies that

customers are still looking for providing service dependably

and accurately, highly satisfactory performance to meet

his /her expectation. Perceived quality obtained a mean 3.22

which is described as High level. It implies that customers

are expecting good looking facilities, interiors, equipment,

and cleanliness surrounding and knowledgeable service staff.

Commitment obtained a mean of 3.27 which is described as

High level. this simply means that customers are still

looking for services that offer sincerity, service right at

first time; do promises, and insists in error but they

should also be obliged to do promises on time.

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The overall mean obtained was 3.26 which is

interpreted as High Level. It means that Factors Causing

Customers’ Loyalty of Sagay Beach Resort was High Level.

This simply shows that there are still service operation and

refinement for the management to continue providing

excellence service to customers.

Table 6. Comparison on Level of importance of the Factors

Causing Customers’ Loyalty of Sagay Beach Resorts
When grouped according to Sex.

SV Sex SD Mean Comp p. Interpretation

.t
Male 0.70 3.30 0.19 0.85 Not
Satisfaction Female 0.86 3.26 Significant

Male 0.74 3.77 0.55 0.58 Not

Trustworthiness Female 0.90 3.27 Significant

Male 0.68 3.27 0.79 0.43 Not

Perceived Female 0.87 3.14 Significant
Quality
Male 0.71 3.19 Not
Commitment Female 0.88 3.39 -1.2 0.23 Significant
1
Male 0.79 3.20 - 0.89 Not
Behavioral Female 0.90 3.23 0.13 Significant
Intension
Male 0.62 3.26 0.04 0.97 Not
Taken as a Female 0.8 3.26 Significant
Whole
3

As shown in table 6 the result revealed that

Satisfaction obtained a computed P value of 0.85 which is

 32

verbally described as not significant; Trustworthiness

obtained a computed P value 0.43; Perceived quality obtained

a computed P value of 0.43; Commitment obtained a computed P

value of 0.23 which is interpreted as not significantly

different and Behavioural intension obtained a computed P

value of 0.89 which is interpreted as not significantly

different;

Based on Findings, when taken as a whole, the result of

the t-test is -0.04. Since the probability, value is 0.97,

which is greater than 0.05 level of significance. This

implies that factors causing customer loyalty in terms of

satisfaction, trustworthiness, perceived quality, commitment

and Behavioural intension when grouped according to sex were

similar .Therefore hypothesis was accepted.

Table 7.Comparison on Level of importance of the

Factors Causing Customers’ Loyalty of Sagay
Beach Resorts Guest When grouped according to Age.
SV Age SD Mean Comp p. Interpretat
ion
.t
25 years Not
Satisfaction old below 0.78 3.27 -0.14 0.89 Significant
25 years
old above 0.73 3.30
25 years Not
Trustworthiness old below 0.79 3.33 0.12 0.90 Significant
25 years
old above 0.84 3.32
25 years Not
Perceived old below 0.78 3.21 -0.07 0.94 Significant
25 years
Quality old above 0.73 3.23
25 years Not
Commitment old below 0.80 3.24 -0.49 0.62 Significant
25 years
old above 0.75 3.32
25 years Not
old below 0.84 3.20 -0.29 0.77 Significant
 33

Behavioral 25 years
Intension old above 0.82 3.25
25 years . Not
Taken as a old below 0.71 3.25 -0.20 0.84 Significant
25 years
Whole old 0.71 3.28
above

As shown in Table 7 there was no significant difference

in the level of importance of the factors causing customer

loyalty in Sagay Beach Resorts when grouped according to age

as reflected by the obtained t-value of - 0.20 at a

probability value of 0.84. The results revealed that

customers whether young or old do not differ significantly

in the level of their loyalty in Sagay Beach Resorts. This

implies that factors causing customers loyalty in terms of

Satisfaction, Trustworthiness, Perceived quality, Commitment

and Behavioural intension when grouped according to Age were

similar. .Therefore Hypothesis was accepted.

Table 8. Comparison on Level of importance of the Factors

Causing Customers’ Loyalty of Sagay Beach Resorts
When grouped according to frequency of visits.
Frequen Sum of Mean
SV cy of Square Df Square F P Interpret
visi s ation

Between 2.83 2 1.42 2.52

0.09 Not
Satisfaction Groups
Significant
Within 49.94 89 0.56
Groups
Total 52.78 91
Between 3.46 2 1.73 2.78
0.07 Not
Commitment Groups
Significant
Within 55.28 89 0.62
Groups
Total 58.74 91
Between 1.59 2 0.80 1.39
0.26 Not
Perceived Groups
Significant
Within 51.06 89 0.57
 34

Quality Groups
Total 52.65 91
Between 0.24 2 0.12 0.20
0.82
Trustworthin Groups Not
ess Within 54.99 89 0.62 Significant
Groups
Total 55.23 91
Between 1.69 2 0.85 1.24
0.30
behavioral Groups Not
Intension Within 60.88 89 0.68 Significant
Groups
Total 62.57 91
Between 1.66 2 0.83 1.70
0.19
Taken as a Groups Not
Whole Within 43.56 89 0.49 Significant
Groups
Total 45.22 91
As shown in table 8 the result revealed that there was

no significant difference in the level of importance of the

factors causing customer loyalty when grouped according to

frequency of visits as reflected by the obtained F-value of

1.70 with a probability value of 0.19 .This implies that

factors causing customer loyalty in terms of Satisfaction,

Trustworthiness, Perceived Quality, Commitment and

Behavioural intension when grouped according to frequency of

visit of customer were similar. Therefore hypothesis was

accepted.
 35

Table 9.Comparison on Level of importance of the Factors

Causing Customers’ Loyalty of Sagay Beach Resorts
When grouped according to Monthly Income
SV Sum of D Mean F P Interpret
Square f Square
s ation
Between 0.01 1 0.01 Not
0.02 0.88 Significant
Satisfact Groups
ion Within 52.77 90 0.59
Groups
Total 52.78 91
Between 0.01 1 0.01 Not
0.02 0.90 Significant
Commitment Groups
Within 58.73 90 0.65
Groups
Total 58.74 91
Between .003 1 .003 Not
.006 0.94 Significant
Perceived Groups
quality Within 52.65 90 0.59
Groups
Total 52.65 91
Between 0.15 1 0.15 Not
0.24 0.62 Significant
Trustworth Groups
iness Within 55.08 90 0.61
Groups
Total 55.23 91

Between 0.06 1 0.0 Not

Behavioural 0.08 0.77 Significant
Groups 6
Intension
Within 62.51 90 0.70
Groups
Total 62.57 91
Between 0.02 1 0.012 Not
0.04 0.85
 36

Taken as a Groups Significant

Whole Within 45.20 90 0.50
Groups
Total 45.22 91

Table 9 revealed that Satisfaction obtained a computed

P value of 0.88 which is verbally described as not

significant; Trustworthiness obtained a computed P value of

0.62 which is interpreted as not significantly different;

Perceived quality obtained a computed P value of 0.94 which

is interpreted as not significantly different; Commitment

obtained a computed P value of 0.90 which is interpreted as

not significantly different and behavioural intension

obtained a computed P value of 0.77 which is interpreted as

not significantly different;

Based on the findings, the computed F value is

0.04 which is greater than the value of 0.85 at .05 level

of significance. This implies that factors causing

customer loyalty in terms of Satisfaction, Trustworthiness,

Perceived quality, Commitment and behavioural Intension when

grouped according to monthly income of customer were

similar. Therefore hypothesis was accepted.

 37

CHAPTER V

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary of results,

conclusion, and recommendations formulated on the basis of

research findings.

The aim of this study is to determine the level of

importance of the factors causing customer loyalty in Sagay

beach Resorts. The results of this investigation may serve

as basis for a proposed program enhancement in Sagay beach

Resorts.

Summary of Findings

Based on the research problems of this study, the

following were considered findings:

1. There are more male respondents with ages below 25

years old with a monthly income of below Php. 10,000

 38

and visited more than times in the Sagay Beach

resorts.

2. The Level Of importance of the Factors Causing

Customers’ Loyalty of Sagay Beach Resorts Guest in

terms of Satisfaction, Trustworthiness, Perceived

Quality, Commitment and Behavioural Intension was high

level.

3. The level of importance of the factors causing

customers loyalty of Sagay Beach Resorts in terms of

Satisfaction, Trustworthiness, Perceived quality,

Commitment, and Behavioural Intension and when grouped

according to Sex, Age, Frequency of visit, and Monthly

Income is not significantly different.

Conclusions

Based on the findings of the study, the following

conclusions were made:

1. The repeated customers rate the factors causing

customer loyalty in Sagay Beach Resorts as High level

regardless of their Age, Sex, frequency of visit and monthly

income. This implies that there are still service operation

for improvement and refinement for the management to

continue providing excellence service to customers.

 39

2. The level of importance of the factors causing

customer loyalty in terms Satisfaction, trustworthiness,

Perceived quality, Commitment, and behavioural intension

when grouped according to Age, Sex, Frequency of visit and

Monthly income were similar .It means that regardless of

their socio demographic profile, their preference and

perception of loyalty were still the same.

Recommendations

Based on the findings and conclusions of the study, are

the following recommendations were made:

1. Satisfaction. The management are encouraged to

provide training for their staff and appropriate seminars,

trainings and workshop regarding what are the standards for

service delivery, how to handle complaint effectively, how

to assist the guest so that it will update and enhance their

knowledge and skills on guest relation.

2. Commitment. The management and service provider

should take consideration on proper greetings, posture, eye

to eye contact and voice tonality .The service providers

must be resourceful enough to give sufficient resources to

satisfy customers’ need and handle complaints timely and

effectively.
 40

3. Perceived Quality. The management uplifts the

service quality in Sagay Beach resorts such as provide

services as promised, pleasant facilities, and also hire

staffs that are caring and knowledgeable. Service providers

should not only be trained for their assigned jobs but the

management should also remind them of their proper hygiene

in order to appear neat when facing their customers.

4. Trustworthiness. The management is encouraged to

take consideration when it comes safety and security of the

guest.

5. Behavioral intension. The researcher would highly

recommend to the management to make Sagay Beach Resorts

Facebook page, they should provide an active website where

customers can view and be updated with their current promos

and latest offers.

6. Similar studies on the level of factors causing

customer loyalty may be conducted to affirm or deny the

present study.
 41

Reference

Bergès-Sennou, F. (2006). Store loyalty, bargaining power

and the private label production issue.
Brentwood,TN:Barna ,an Imprint of Tyndale House
Publisher

Bordens ,k .S &Abbott,B. B. (1999) Research Design and

th
Methods: A Process Approach (4 ed).Mountain View , CA:
Mayfield Publishing Company

Cornell, D.A. V (2015:44). “ Factors Causing Customer

Loyalty in Standard Hotels In Metro Manila : As
Springboard For a Proposed Marketing Program “in BIMP-
EAGA Conference 2015:Working as One Sustaining ASEAN
Community .14-16 December 2015.A and A Plaza Hotel,
Puerto Princesa, Palawan.

Fishbein and Ajzen, I. (1975). Belief, Attitude, intension

and behavior, and Introduction to theory and Research,
Adison Wesley, Reaching. A.

Fraenkel, J.R. and Wallen, N.E. (2006).How to Design and

Evaluate Research in Education. Boston: McGraw Hill,
Inc.

Hao, J. X., Yu, Y., Law, R., & Fong, D. K. C. (2015). A

genetic algorithm-basedlearning approach to understand
customer satisfaction with OTA websites. Tourism
Management, 48, 231-241.
 42

Mack R, R Mueller, J Crotts and A. Broderick (2000).

Perceptions, correctionsand defections: implications
for service recovery in the restaurant
industry. Managing Service Quality 10 (6): 339-346.

Mattila, AS. (1998). Emotional bonding and restaurant

loyalty. Cornell Hotel and Restaurant Administration
Quarterly (December): 73-79.

Oliver RL (1999). Whence consumer loyalty? J. Mark. Fundam.

Issues Dir. Mark., 63: 33-44

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988).

SERVQUAL: A multi item scale for measuring consumer
perceptions of the service quality.
Journal of Retailing, 64(1), 12-40.

Pritchard, M. P., Havitz, M. E., & Howard, D. R. (1999).

Analyzing the commitment loyaltylink in service
contexts. Journal of the Academy of Marketing Science,
27(3), 333-348.

Rauyruen, P. & Miller, K. (2007). Relationship quality as a

predictor of B2Bcustomer loyalty. Journal of Business
Research, 60, 21-31.

Wang, J. S. (2009). Trust and relationship commitment direct

selling distributors andcustomers. African Journal of
Business Management, 3(12), 862-870.
 43

“APPENDIX A”

LETTER TO THE VALIDATORS/VALIDITOR

Dear Sir/Madame:

The undersigned students of Northern Negros State

College of Science and Technology are going to conduct a
research study on the “Factors Causing Customer loyalty of
Sagay Beach Resorts.”

This research be able to determine the level Factors

Causing Customer Loyalty in Sagay Beach Resorts as input to
tourism development program.

We would like to request your expertise to validate the

above mentioned questionnaire which was adopted from a using
the Good and Scates validating instrument.

Thank you very much for sharing expertise on this

matter.
 44

Sincerely yours,

Liezl Aika L. Bulfa

Rolando D. Eliot Jr.

Jemar Nueve

May M. Villamento

Sharmaine L. Yapoyco

“APPENDIX B”

Direction: Kindly rate or evaluate the rating scale attached herewith

according to the following criteria set forth by

Carter V. Good and Douglas F. Scates.

Scale Interpretation
4 Very Good
3 Good
2 Fair
1 Poor

Rating
Criteria for evaluation Jury Jury Jury
1 2 3 Total

1. The questionnaire is short enough such that

the respondent will not reject it because it
will not much of his precious time. 3 4 3 10
2. The questionnaire has face appeal much that
the respondent will be inclined to accomplish 3 4 3 10
it fully.
3. The questionnaire can obtain some depth to the
responses and avoid superficial answer or 3 4 3 10
information.
4. The items and their alternative responses are
not too suggestive or too un-stimulating. 3 4 3 10
5. The questionnaires are eliciting responses,
which are definite but not mechanically 3 4 3 10
forced.
6. The items are stated in such a way that the
responses will not be embarrassing to the 3 4 3 10
person concerned.
7. Items are framed in such a manner as to allay
suspicion on the part of the respondent 4 4 3 11
 45

concerning hidden purposes in its scope or

philosophy.
8. The questionnaire is not so narrow, not
restrictive or limited in its scope or 4 3 3 10
philosophy.
9. The responses to the questionnaire, when taken
as a whole could answer the basic purposes for
which the questionnaire is designed and 3 3 3 9
therefore are considered valid.
10. The questions are relevant to the
present study. 4 4 3 11
General Average
3.5 3.0 3.2 3.5

Total Average: 3.5-Good

“APPENDIX C”

The undersigned students of Northern Negros State College of Science and

Technology have chosen you as one of the respondents to this study
entitled “Factors Causing Customer’s Loyalty of Sagay Beach Resorts.
In this connection, please answer this questionnaire truthfully
and objectively as possible. Thank you very much for your favourable
attention.
Part I. Personal Information (Please Check the Box)
Name (Optional): _________________________________________
1. Age: 25 yrs. old 2. Sex: Male
25 yrs. Old above Female
25 yrs. Old below
3. Frequency of Visit: 4. Monthly Income:
2 time – 3 times Php 1,000 – Php 10,000
4 times – 6 times Php 10,001 – Php 20,000
7 times – above Php 20,001 – above

Part II. Evaluate the level of importance of the following factors to

you
by putting a check on the box of your choice.
Rating Scale Verbal Interpretation

5 Very High Level (VHL)

4 High Level (HL)
3 Average Level (AL)
2 Low Level (LL)
1 Very Low Level (VLL)

Very Very
Item High High Average low low
(5) (4) (3) (2) (1)
1. Customers Loyalty
1.1 Satisfaction
1.1.1The current beach resort
always meets my expectation.
 46

1.1.2 The current beach resort

provides an excellent service.

1.1.3 The current beach resort

provides satisfied performance
in terms of services.

1.1.4 The current beach resort

is striving to obtain a positive
and memorable experience for the
customers.

1.2 Commitment
1.2.1 The current beach resort
offers excellent service to the
customers.

1.2.2The current beach resort

cares about their customers.
1.2.3 The current beach resort
gives sufficient resources to
satisfy customer needs

1.2.4 The current beach resort

committed to high level of
customer service.

1.3 Perceived Quality

1.3.1 The current beach resort
provides service as promised.

1.3.2 The current beach resort

staff member provides prompt
services when I needed.

1.3.3 The current beach resort

provides facilities which are
pleasant and appealing.

1.3.4 The current beach resort

staff member is Knowledgeable
and professionals.

1.4 Trustworthiness
1.4.1 The current beach resort
usually fulfils the commitments
it assumes.

1.4.2 The current beach resort

concerned with the present and
future interest of guest.

1.4.3 The current beach would not

intentionally do anything that
would harm the guest.

1.4.4 The current beach resort

 47

is receptive to the needs of the

guest

1.5 Behavioural Intensions

1.5.1 The current beach resort
provides service which I intended
to use in the future.

1.5.2 The current beach resort

have positive thing to talk about.

1.5.3 The current beach resort

is one of the place to be
recommended to someone who
seek my advice.

1.5.4 The current beach resort

will be one of the places I’ll
Skeep coming back even though
there are alternative competitors.
“APPENDIX D”

Republic of the Philippines

NORTHERN NEGROS STATE COLLEGE OF SCIENCE & TECHNOLOGY
Old Sagay, Sagay City, Negros Occidental
(034)722-4120, www.nonescost.edu.ph
HOTEL & RESTAURANT MANAGEMENT DEPARTMENT

CERTIFICATION OF RECOGNITION

This is to certify that Junmarl B. Alconga an

English teacher currently employed at Sagay National Senior
High school, had critiqued the thesis entitled ,”Factors causing
customer loyalty “ in partial fulfillment of the requirements for
the degree of Bachelor of Science in Hotel and Restaurant
Management.

Issued on this 10th of November 2017 at Northern Negros

State College of Science and Technology, Brgy .Old Sagay,Sagay
City, Negros Occidental.
 48

JUNMARL B. ALCONGA
English Critic