CHAPTER ONE
INTRODUCTION
1.1 Background of the study

In the global market today, competition among service providers is stiff and service firms
continuously struggle to create and maintain quality relationships with customer, which
has intensified the desire for companies to become very creative and aggressive so as to
strive in the market and gain competitive advantage over the others (Shapiro & Nieman
Gonder, 2006, cited in Ndegwa 2013). As competition in the hospitality industry
becomes stiffer, it becomes more challenging to meet the service anticipations of
customers as a result of the challenges in the market which arise majorly from the
characteristics of services which include heteroginity, intangibility, perishability and
inseparability (Kotler & Armstrong, 2008).
In the economy today, the service industry occupies a very large position of the
developed as well as developing nations. The increased rivalry and enlargement of
amenities and services that are unique in the hospitality industry has made entrepreneurs
to vigorously search for ways of gaining competitive advantages, with service quality
being the most critical factor distinguishing industries in the hospitality sector Ugboro
2000, cited in Ambani (2016). Quality service is a crucial determinant of the customer‟s
level of satisfaction and the exact amount they will be willing to pay, commercial
enterprises view quality service as the most important aspect in achieving competitive
advantage as well as differentiation of the market (Aziz, 2018).

According to the trend briefing done globally on the future trends of customer service
that will redefine excellent service for 2015 and the years to come, globally 66% of
consumers changes businesses and/ or brand due to poor customer service. 82% said the
brand could have done something to stop them from moving, 75% of those who switched
the brand it was not because of the service itself but how it was delivered to them (Paul,
2013). Ambani (2016) recommends in his study that for companies to be successful they
must engage proactively is service delivery, customers will always explore the various
channels of communication as a result they will be expecting personalized, proactive and
even preemptive services. Organizations must hold insights from previous experiences,
transactions, and interactions to meet those expectations.. To lure the local customers, they have come out with various offers
and discounts. Some have even gone to the extent of making the customer feel of the
particular place of which their menu comprises of like if you go to Chinese Restaurant,
you will feel the Chinese culture in there. With this kind of competition, it‟s important for
restaurant owners to develop methods that will assist them in retaining the customers or
risk the loss of closing down the business. Kanana (2013) noted that as a result of the stiff
competition in the hotel industry, organization‟s strategies have shifted from customer
acquisition to customer loyalty and retention which can be made possible by delivering
excellent customer services.

1.1.1 Customer Service Delivery Customer service is the art of looking after the needs and wants of the customers by
delivering and offering professional, quality services and help before, during, and after
the customer’s needs are achieved, it is how you deliver your products and services to the
customer and includes accessibility, efficiency and cost effectiveness (Kanana 2013).
Delivering remarkable customer service refers to creating extra ordinary and memorable
experiences for customers, it‟s far from having a friendly face at the customer care desk
and attending to phones; it should be included in the whole organization and emphasized
to every employee (Aziz, 2018). Businesses that empower employees to do whatever it
takes to make the customer happy typically develop a reputation for delivering excellent
customer service (Aziz, 2018).

Happy customers share the gospel with others; one of the best strategies for marketing
that can easily sell the organizations is the word of mouth. When customers enjoy your
services and have great experiences they always tell their friends and families, which is
good marketing and publicity for any business (Paul, 2013). According to Onyisi (2016),
good customer service results in happier employees, when employees know that the
organization they work for is committed to delivering services of high quality, they
become more fulfilled with their work, their duty and their ability to interact with and
help the clients they deal with frequently. A survey by KPMG (2013) on customers‟
perception of banks in Africa indicated that clients consider friendliness of the employees
as the crucial aspect determining their contentment to the bank. Out of ten, three
customers indicated they were very happy with the knowledge of the staff„s on the banking products and how the services were delivered to them, only ten percent of the
total showed that they were satisfied extremely that their concerns and complaints were
being handled as required. Each firm has to therefore put its best foot forward to enhance
employee knowledge of the products and services rendered This has been the only way in
the present employee productivity situation for survival, growth, stability and excellence
in the business.

The service quality Gap model elaborates the link between perception‟s of managers and
employees actions, there is a disconnect when it comes to the set service expectations and
the actual service delivered to the customers (Njoroge, 2013). Conversion of perceptions
into quality service requirements by the leaders will result to staff actions that affect the
service standards perceived by the customer; this could be as a result of poor
communication to the customer, absence of needed training on customer service delivery,
absence of morale and low satisfaction from the jobs (Njoroge, 2013). Taylor (2002) is of
the opinion that customers desire personalized experience and humane interactions during
service delivery from the employees, which should be obtained through empowerment of
employees.