The influence of relationship quality and switching costs on customer loyalty in the Malaysian hotel industry

The intense competition among hotels in Malaysia means that there is a larger demand for service outsourcing. Hotels are now exposed to a wider choice of service providers that are willing to provide services.As a result, hotel managements are more inclined to switch to other service providers if the current service providers are unsatisfactory.This paper aims to investigate the effect of relationship quality and switching costs on business customer loyalty from the customers’ perspective in the context of hotel service outsourcing.This study is important considering the economic advantages of retaining current customers as opposed to searching for new customers.Partial Least Squares was adopted as the data analysis methodology.Results of the study show that relationship quality positively and significantly influences customer loyalty. However, switching costs does not influence customer loyalty

Predictors and customer loyalty in the Malaysian hotels' outsourcing relationships

The success of a firm in an outsourcing relationship depends on the loyalty of a business customer towards its service providers. Therefore, it is crucial for service providers to focus on relationship marketing strategies to increase their customers’ loyalty. However, there is little agreement as to which relationship marketing strategies that should be used to maintain customer loyalty. This study intends to examine the relationships between relational norms, relationship quality, and customer loyalty. Data collected from 159 hotel managers were analyzed using Partial Least Squares. Results of this study revealed that relational norms and relationship quality are positively related to customer loyalty

Developing undergraduates' multicultural skills for career success and national integration

In today’s global work environment characterized by workplace diversity, multicultural skills or cultural intelligence (CQ) are essential soft skills for managerial success.In a multi-cultural country like Malaysia, the development of multicultural sensitivity is also important so that its citizens will learn to live in harmony. This paper reports on a study which reviews the effectiveness of a campus wide program that was implemented by a Malaysian public university which specializes in management education from 2011 to 2013 that aimed to facilitate the development of multicultural skills in undergraduates.This study has provided some insights on areas for improvement of future programs.The findings of the study also indicated that there is a need to promote higher interaction between the university’s local and international students. One of the best ways to develop multi-cultural skills among Malaysian undergraduates is to promote greater interactions between Malaysian and non-Malaysian students as well interactions between Malaysian students of various races in campus

Perkasakan sistem pengangkutan awam luar bandar

MUKA hadapan akhbar utama di negara ini sekali lagi dipenuhi dengan berita kenaikan harga petrol RON 95 dan diesel.Walaupun kenaikannya hanyalah sebanyak 20 sen seliter atau kenaikan 10.5 peratus untuk RON 95 dan 11.1 peratus untuk diesel, kenaikan ini akan menyebabkan harga barangan dan perkhidmatan meningkat lebih besar peratusannya berbanding peratusan kenaikan harga bahan api tersebut

Proaktif kuatkuasakan undang-undang jalan raya

MINGGU lepas kita telah dikejutkan dengan kemalangan ngeri yang telah meragut 37 nyawa penumpang bas henti-henti antara Genting Highlands dan Kuala Lumpur. Walaupun setiap hari dada-dada akhbar utama dipenuhi dengan berita-berita berkaitan kemalangan,namun kemalangan yang berlaku di KM3.5 Jalan Genting Highlands merupakan kemalangan yang terburuk pernah berlaku di negara ini

The Conceptual Paper on Service Quality and Business Zakat Compliance Behaviour among SMEs in Kedah

The quality of service is an essential element in evaluating the capabilities of an institution to meet its goals. The purpose of the conceptual framework is to study the relationship between the service quality of Lembaga Zakat Negeri Kedah and the compliance of business zakat payers. The paper discussed the introduction of zakat, definition of service quality, service quality model, compliance behaviour and the relationship between service quality and compliance behavior of zakat payers. The SERVQUAL Model and Theory of Planned Behavior are discussed in this paper to measure the relationship between service quality and the compliance behavior of zakat payers. The recommendation of service quality improvement by Lembaga Zakat Negeri Kedah has been suggested in this study

Influence of Awareness on SME’s Intention towards Islamic Finance Adoption in Pakistan

A large number of SMEs in North Africa, Middle East and South Asia prefer Islamic financial products over their conventional counterparts. Similarly, in Pakistan SME owner-managers prefer Islamic finance as 20-25 percent of SMEs are not willing to take conventional finance.Despite higher demand, however, these firms are unable to access Islamic finance from financial institutions.There are several factors behind this dilemma on both supply and demand side.The present study discusses demand side issues pertaining to lack of adoption of Islamic finance by SMEs in Pakistan. Among various demand side factors, this paper has focused on the issue of lack of financial knowledge or awareness of Islamic financial products.In Pakistan, due to financial illiteracy of SME owner-managers, they seldom are able to identify suitable available financing options for their business financial needs.Thus, this study intended to determine the importance of awareness factor in influencing intention of SMEs to adopt Islamic finance. A conceptual framework has been constructed based on Theory of Planned Behaviour (TPB) and research propositions are developed in order to elaborate role of awareness in influencing SME managers’ intention towards Islamic finance adoption.A preliminary analysis has been conducted through pilot study to check the internal consistency and reliability of instrument and found valid for further research. These both outcomes of the study are expected to lay foundation for more structured research on the issue of demand side factors of adoption of Islamic financial products

Drivers of customer loyalty towards Islamic subsidiary banks in the Northern States of peninsular Malaysia

It is undeniable that customer loyalty contributes to the sustainability and success of the banking industry. With the intense competition in the industry, banks are now trying to retain their customers with the aim to increase their revenues. As there are disagreements among the variables that influence customer loyalty, this study examined the relationships between perceived value, image, satisfaction and loyalty in an integrative model. Analysis was done on data collected from 139 bank customers in the northern states of Peninsular Malaysia using Partial Least Squares. The results of the study revealed that perceived value and bank image led customers to experience greater satisfaction, resulting in customers to be more loyal to their banks. The research outcome contributes to the body of knowledge by integrating the four variables into one model and by testing the model in the banking industry. The findings from this study may assist bank managers to formulate strategies to increase their revenues through customer loyalty

TOWARDS UNDERSTANDING FINANCIAL BEHAVIOR OF SMES: ROLE OF SOCIO-PSYCHOLOGICAL FACTORS OF OWNER-MANAGER

Purpose - Understanding SMEs’ use/adoption of financial services is prerequisite for policy makers and managers of financial institutions interested in their growth and development. The study seeks to explore influence of personal characteristics of owner-manager on firms’ financial behavior to use financial services. Design/Methodology/Approach – Qualitative methodology has been employed to propose alternate model of understanding financial behavior of firms as influenced by socio-psychological factors of owner-managers. Study makes use of Theory of Planned Behavior and its variants to support the proposed model. Findings - The study suggests that theories of behavior need to be applied to better understand the owner-manager’s intentions to use financial services, which in turn reflect SMEs’ financial behavior. Research limitations/implications - The proposed model and relationships would help policy makers, managers and research scholars to better understand SMEs financial behavior. There is need for comparative empirical studies examining the propositions made by the study. Originality/Value – The papers discusses the demand side issues and proposes a general model of socio-psychological factors of owner-manager that affect SMEs’ decisions toward usage of financial services