Chapter 1:

One day during his job as a street sweeper, he and his friend called International 4-8818, discover a secret railroad tunnel. International 4-8818 warns Equality 7-2521 that they should leave and forget about the tunnel. He further investigates alone and finds out that the tunnel was from the Unmentionable Times.

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He then makes International 4-8818 promise to not tell anyone about the tunnel and Equality 7-2521 also realizes that he has committed another sin which was preferring one person over another.

Since then every day, Equality 7-2521 secretly returns to that tunnel and learns more. While working things alone by himself on the tunnel, he also notes that he has committed another sin which is wanting to be alone, but he does not feel any shame or regret.

Equality 7-2521 takes some time to reminiscent about his childhood in the House of Infants and how he was different from the others. He started to list all of the differences in height, smarts, and etc. He also mentioned how the teachers disliked him because he was different or smarter than the others.

Equality 7-2521 writes in a journal, underground about how he was chosen as a street sweeper by the Council of Elders in spite of him. Though he accepted being a street sweeper to repent his sin of wanting something more over another, which in this case, is about wanting to be a scholar.

Chapter 2:

Equality 7-2521 meets the ‘Golden One’ while she is working in the fields and falls deeply in love. On the next day when she sees him on the road, they communicated with each other using gestures instead of actually talking. A couple of days later, they finally have a real conversation and he finds out that her name is Liberty 5-3000.

When he starts to compliment her, they suddenly tell each other that they don’t just want to be siblings. Equality 7-2521 starts thinking of how he didn’t want to see her in the City Palace of Mating and he gets confused with what he’s feeling.

Equality 7-2521 gets reprimanded by a Council Member for showing his happiness publicly, but is then corrected by the Council Member saying how he should be happy because he has his brothers. This causes him to think about the meaning of happiness in the tunnel and why they can’t be unhappy.

Equality 7-2521 starts to wonder about the people and their lives during the Unmentionable Times. He then remembers a person called the Transgressor of the Unspeakable Word, who was burned alive and seen as evil while he looked like a saint in Equality 7-2521’s eyes.

Chapter 3:

While in the secret railroad, Equality 7-2521 accidentally discovers electricity by dissecting a frog on a copper wire. He starts to piece the idea of electricity together by recalling his past experiments and notes. He then curiously explores more of the tunnel and finds some objects that he didn’t know of, which were actually wires, switches, light bulbs, and etc.

After making his discovery, Equality 7-2521 starts to think about whether or not the Council of Scholars knows about it. He also starts to notes that when only one person knows something and the others do not, it is not true by a virtue.

Now Equality 7-2521 figures out that electricity is a powerful source of energy and it may scare a lot of people. He also believed that the people from the Unmentionable Times have harnessed this power as a source of energy.

These thoughts actually make Equality 7-2521 start to have thoughts that go against his society because they said that no one is or can be smarter than the Council of Scholars, but he now believes that he is.

Chapter 4:

This is when Equality 7-2521 reveals to Liberty 5-3000 that he calls her the ‘Golden One’, surprisingly she responds by saying that she nicknamed him the ‘Unconquered’.

Equality 7-2521 then warns her that these thoughts weren’t allowed at all and she responds by saying that she knows, but doesn’t really care. He then calls her ‘dearest one’ and actually believes that he is the first male to ever say that to a female. However, when Liberty 5-3000 hears this, she offers him her body in submission and telling him that she belongs to him.

Then, Liberty 5-3000 tries to convince Equality 7-2521 into crossing the hedge and coming into the fields, which is where she was at. But, he refuses her offer which in turn made her give him a drink of water instead.

She feeds him the water until he finishes drinking all of it. Even though they were talking so much, nobody else noticed their conversations. When she finishes feeding him the water, they back away from each other because they got confused about their intimate gestures.

Chapter 5:

Equality 7-2521 believes that he has created light after he accidentally makes a lightbulb work. He is very surprised that he could make light without any fire.

Suddenly, Equality 7-2521 realizes that with this light he can provide his people with a clean energy source. He decides that he must let everybody know of this electricity.

After making these discoveries, Equality 7-2521 thinks that he deserves to be in the Home of the Scholars. He also thinks that with the help of other scholars, they can find more uses with light and learn more about it in general.

Equality 7-2521 decides that the annual yearly meeting held by the World Council of Scholars is the perfect time to reveal his discoveries. He also thinks that if they are impressed enough, they would forgive all the rules that he broke and all of his sins. He also thinks that they will reassign him to be a scholar because his discoveries were so important.

He now starts to be curious about his own body like his arms, legs, and physical strength. He then wants to see his reflection, but it was not right for him to do so.

Chapter 6:

Unfortunately one day, Equality 7-2521 returns to the Home of the Street Sweepers very late due to his exciting discoveries. Then the Council questioned him, but he did not answer anything.

The Council had him put in the Palace of Corrective Detention until he confesses everything. Equality 7-2521 then writes about how he was physically tortured at the Palace of Correction and how he still wouldn’t confess.

After regaining his consciousness due to his beatings/torture, Equality 7-2521 still felt proud of himself at how he kept his secrets.

He stayed at the Palace of Correction until he realizes that it was almost time for the annual yearly meeting held by the World Council of Scholars and decides that he needed to leave. He easily escaped the Palace of Correction because there wasn’t anything to stop him due to the fact that nobody has ever tried to before.

After he leaves, Equality 7-2521 returns to the tunnel and writes in his journal about how he was going to be forgiven because of his important discoveries that would help everyone.

Chapter 7:

Unfortunately, when Equality 7-2521 went to the meeting, it did not go as planned. The scholars questioned why he was there and were furious when he showed them the newly discovered light. They in fact, did not care about his discoveries or inventions. Instead, the scholars reprimanded him for expressing individuality and threatened to execute him.

Equality 7-2521 begged them to forgive him because it was for the greater good of the people even though most of the things that he did were wrong and he knew it. Equality 7-2521 then accepts that he is to be punished for his wrongs, but he asked them what was going to happen to the light.

The scholars then asked him if anyone believes that the light is useful and important. Equality 7-2521 says that they did not and then the scholars reminded him of another one of their society’s beliefs, which is that something is not true if not everyone agrees.

They then also remind him that the light cannot be good because of another one of their society’s beliefs, which is that if something isn’t shared with everyone then it can’t be good.

The scholars tell him that they cannot have the light in their society because of their new Department of Candles and then they all voted to destroy the light.

However, before they can do anything, Equality 7-2521 takes the light and flees. After running away for a while he notices that he was all alone in the Uncharted Forest and believes that he is doomed. He regrets that fact that he cannot see Liberty 5-3000 ever again, but it would be for the best.

Chapter 8:

Equality 7-2521 wakes up and remembers that there weren’t any ringing bells to wake him up, which makes him realize that he was now making his own choices. He starts to take in the natural scenery in the forest around him.

He then heads deeper into the forest and explores more of it. When Equality 7-2521 got hungry, he decided to kill a flying bird with a stone and cook it to eat. After he eats it, he gets filled with pride and fulfillment.

He stops to drink at a stream that he comes across and finds his reflection. Equality 7-2521 was in awe of how he looked and again, compares himself to his other brothers. He then decides that he wasn’t afraid of being alone anymore without anybody else’s company.

While walking he also remembers that he was exiled by his society, but quickly realizes that he doesn’t care at all. Yet, he still thinks about all of the things that he had left behind.

Chapter 9:

After several days still walking in the forest, he suddenly hears somebody’s footsteps and looks around to figure out whose it was. Equality 7-2521 finds out that Liberty 5-300 had followed him into the forest.

He then questions her about how she even came into the forest. Liberty 5-3000 tells him that she heard rumors about what had happened with him and the World Council of Scholars.

Liberty 5-3000 tells Equality 7-2521 that she wants to stay with him. She also said that she’ll still follow him even if he doesn’t want her to and then he begrudgingly accepts.

Liberty 5-3000 confesses that she likes him more than her other brothers and begs him to do whatever he wants with her while quickly bowing before him. He responds by having her stand up and then kissing her.

Equality 7-2521 then tells Liberty 5-3000 to forget about their brothers and actually enjoy themselves here. He finally declares themselves as individuals and not ‘we’ like their old society. They then both have sex.

They both decide to find a nice spot and build a house so that they could live there together. Equality 7-2521 starts to think about how wrong the rules in his old society was and about how happy he was as an individual. Liberty 5-3000 wanted that she loves him, but could not find a different word apart from ‘we’.

Chapter 10:

They both climb up a mountain and hiked for days. They actually found a house and couldn’t believe their eyes at first until they got a closer look.

Apparently, the house was abandoned and Equality 7-2521 wondered how was still holding up. They both concluded that the house was from the Unmentionable Times.

When they entered the house together, they were in awe of all the objects and technology that was inside. They were also shocked by how different the house was compared to the one in their old city, an example would be the color.

While they explored more of the house they saw things that they have never seen before, like separate rooms/ privacy, mirrors, and more light bulbs. Liberty 5-3000 looks inside of a closet and was again surprised at how many different colors there were. Equality 7-2521 on the other hand, find a library with many books that he knows the language of.

They decide that they will both live there together. Liberty 5-3000 stares at her reflection in a mirror while Equality 7-2521 finds food and water for the both of them. When he carries her to bed, he returns to the library and starts reading.
Chapter 11:

While he reads, Equality 7-2521 discovers the word ‘I’ and realizes that he has missed a lot because of his society. He then writes about the actual meaning of things.

Equality 7-2521 had enjoyed the sounds of nature and the earth in general. He finally decides that he is his own person and he will do what he pleases, not what someone else tells him to do. He also realizes that the only purpose in life was to find his own personal happiness.

Equality 7-2521 discovers his own freedom and that he doesn’t own his brothers anything or vice versa. People who want his honor will have to earn it, he chooses his own friends, and if he’ll see them or not.

He realizes that his society is all wrong and using the word ‘we’ instead of ‘I’. Equality 7-2521 also feel that he has seen a new God, and it is is ‘I’.

Chapter 12:

Discovering the word ‘I’ made him pity mankind and especially his old society. Sometimes when he reads, he would also read for Liberty 5-3000. After she listens to his new discovery of ‘I’, she then tells him that she (as an individual) loves him.

Later on, Equality 7-2521 decides that they needed a new name to signify themselves as individuals. They were renamed as ‘Prometheus’ and ‘Gaea’.

Equality 7-2521 decided that he was chosen to carry on the crusade of the Transgressor of the Unspeakable Word. He also chooses to keep learning about the Unmentionable Times and that they will never be like their old society.

Liberty 5-3000 reveals that she is pregnant and Equality 7-2521 declares that his future son will be raised knowing of freedom, happiness, etc. He also decides that when their house is fixed, he would go back to their old city and find people who weren’t broken from society’s teachings, to start a new race.

Equality 7-2521 also concluded that somewhere in the future, the spirit of men would prevail over evil. He then promises himself that he would bring back a world that had freedom, life, and happiness.

1.0 Introduction
Descriptions related to green hotels and its practices are presented. This chapter also includes scope of study and issues that need to concern in this research will be formulated. Furthermore, desired goals to be achieved and research questions are developed and presented.

Research Background
Over the last few decades, the public concerns toward to the environmental problems/ disasters have progressively escalated (Heesup Han & Yunhi Kim 2010). Lately, Malaysia has been facing a number of environmental issues which is deforestation, climate change and global warming. Malaysia’s temperatures are predicted to increase by 0.6 C to 4.5 C by the year 2060 by the Intergovernmental Panel on Climate Change (2007) (Zam zuriyati 2014). According to (Julia 2015), 5% of the global carbon emissions and 14% of total greenhouse emissions are caused by tourism around the world. Thus, tourism is considered have a major impact on the environment. In many countries, tourism is one of the major sources of income and employment. Tourism depends intensely on environmental resources which include clean air, warm atmosphere, and landscape formation among others (Nor Azila 2014) To deliver comprehensive accommodation services/supplies to the tourists, services such as lighting, laundry, heating, cooling, swimming pools and ventilation, has lead hotel industry into a high consumption of water, energy, non-durable goods and produces substantial waste and emission of carbon dioxide which these activities are constitute as threat to the environment (Chih-Ching Teng 2017) According to (Zam Zuriyati 2014), hotel industry has been consider as the most environmentally harmful sector that has disproportionate consumption of energy, water, and non- durable goods which possessed 75% of its environmental impact. In recent years, numerous customers have been aware of the harming of environmental resources and environmental damages caused by the hotel industry. (Heesup Han ; Lee Tzang 2009). A great alteration in consumer buying behaviors and attitudes towards eco-friendly business establishment has occurs due to these environmental concerns and awareness (Heesup Han ; Yunhi Kim 2010). Many customers had realized that their buying behavior might bring harm to the environment and has begun to change their purchasing habits by inquiring and purchasing for eco-friendly products (Mei-Fang Chen 2013). Subsequently, hotels are ending up more concerned towards keeping the balance between ecological issues, resources consumption issues, moral and societal concern and productivity. An attention on environmental issues particularly in the tourism sector has prompted the expanding number of green hotel (Zam Zuriyati 2014). The Green Hotels Association (2014) characterized that Green hotel is a pro-environmental lodging properties whose managers are keen to execute diverse green practices/programs that are water saving, energy saving and reduce the use of solid waste while saving cost to help secure our planet.( Dr. Imran Rahman 2016). In recent years, numerous hotels around the world are putting intensive efforts in searching for compelling approaches to become “green” so as to position themselves distinctively within the competitive hotel industry and Malaysia is not an exception to this (Tilikidou Eirini 2014). In the recent past, (Punitha 2011) indicates that Malaysia is one of all the earliest countries within the world that have taken serious consideration relating to the environment by enacting the Environment Quality Act 1974. Likewise in other countries, many hotels in Malaysia had incorporated the green concept in their business operations. There were several most known green hotels in Malaysia which are Sukau Rainforest Lodge in Sabah, Shangri-La Hotel in Kuala Lumpur, Shangri-La’s Tanjung Aru Resort and Spa in Sabah, and Shangri-La’s Rasa Sayang Resort and Spa in Penang, Malaysia. These hotels have been awarded the eco-certification standards and environment management standards like ISO 4001.

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Problem Statement
As environmental safety is now a global concern, a way to limit the environmental impact while additionally presenting high-quality customer service is a crucial difficulty for hotel industry (Han and Yoon, 2015). Butler (2008) factors out that most customers tend to hold bad impression towards green hotel practices because these practices want additional costs to enforce, which affects room prices to be higher and inconvenient for customers.

Rresearch shows that tourists is probably inclined to stay in green hotel but do no longer want their encounters to be compromised by the green practices. (e.g. bath tubs with low water volume; reuse towels and linens) (Berezan et al., 2014). Despite that, although there are numerous ideas and projects to support the green hotel, the reserve revenues for green hotels neither elevated nor reduced (Chong ; Verma, 2013). Even though the number of green hotels continues to increase, studies at the guest’s stay intention is still inadequate. Most of preceding researches in green hotel field had been focused on the consumer’s perception on green hotel (Cometa, 2012); management motivation to adopt the green hotel practices (Kamalul Ariffin, Khalid, ; Wahid, 2013); and customer satisfaction on green hotel (Robinot ; Giannelloni, 2010); impact of personality traits and marketing strategy (Mohamad et al., 2014).
This study at is vital in view that there is a conflict of benefits among hotels, society and customers in Malaysia. Moreover, from hotel perspective understanding what affects their customer’s stay intention can help them design their business version to be both aggressive and green. There are quite a number of pro-environmental studies have extended TPB with cognitive elements such as environmental awareness and perceived moral obligation (Chan et al., 2014; Kaiser, 2006). The aim is to investigate if the additional variables together with TPB can better explain customers’ intentions to stay green hotels in Malaysia.

1.3 Research Objectives
The objective is set as a direction to achieve the goals of this study (Business, 2018). It is considered as comprising into two parts:
1.3.1General Objective
Primary intention of this paper is aim to discover the drivers that influence customer intention to stay at green hotels in Malaysia.

1.3.2Specific Objectives
Four exact intentions for this paper are discusses below:
To examine is there a positive influence of subjective norm towards consumer’s stay intention in green hotels in Malaysia.

To examine is there a positive influence of perceived behavioural control towards consumer’s stay intention in green hotels in Malaysia.

To examine is there a positive influence of perceived moral obligation towards consumer’s stay intention in green hotels in Malaysia.

To examine is there a positive influence of environmental awareness towards consumer’s stay intention in green hotels in Malaysia.

1.4 Research Questions
Numbers of questions are stated to determine the influence of Independent Variables (IV) towards Dependent Variable (DV).
Does subjective norm influence consumer’s stay intention in green hotels in Malaysia?Does perceived behavioural control influence consumer’s stay intention in green hotels in Malaysia?
Does environmental awareness influence consumer’s stay intention in green hotels in Malaysia?
Does perceived moral obligation influence consumer’s stay intention in green hotels in Malaysia?
1.5 Hypotheses of the Study
Hypothesis is a statement of prediction. It explains in detail terms what will happen in this study and this study has four hypotheses. The purpose of the study is to explore some area in more in depth in order to develop some prediction that can be tested and helpful in future research. It is a way for researcher to pre-determine the result of the variable that going to be tested.

H1: There is a positive influence of subjective norms towards intention to select a green hotel.

H2: There is a positive influence of perceive behavioral control towards intention to select a green hotel.

H3: There is a positive influence of perceive moral obligation towards intention to select a green hotel.

H4: There is a positive influence of environmental awareness towards intention to select a green hotel.

1.6 Significance of study
This research is contributed primarily to identify consumer intention to stay in green hotel. The goal of this research is to examine the relationship between Malaysia hotel guest environmental concern, and their willingness to pay a premium for hotels with green practices. Due to the facts that the competition of hotel is getting stiff and more hotels are developed in Malaysia and more wastage are happen therefore hotel are applying green practices, for instance G Tower Hotel in Kuala Lumpur is one of the green hotel CITATION Nan07 l 17417 (Scanlon, 2007). Although green practices are not part of the core functional of hotel services, but depending on their presentation, green practices can be an extra service that provide intangible benefits to customers CITATION Kyu11 l 1033 (Kyung Ho Kanga, 2011). This satisfaction may influence guests’ willingness to pay a premium and stay at green practices hotel CITATION GJD08 l 17417 (G.J.Dalton, 2008). Hotels are equipped with spas, pools, or fitness centre can bring tangible comfort to hotel guests, green practices may satisfy guests’ self-esteem need or psychological emotional need. The purpose of this study is to describe socio-demographically, psychographic and behaviourally, guests that have indicated that they are willing to pay a premium and willing to stay in a green practice hotel and environmental friendly hotel CITATION GJD08 l 17417 (G.J.Dalton, 2008). These researches will reviews the literature and delineate methodology which includes survey and data collection.

1.7 Chapter layout
This thesis consists of seven chapters. Chapter 1 is basically the first part of the report that allows the readers to get a general idea of what the FYP report is about. Research problems/ issues are introduced, and the importance and validity of research are indicated in this chapter. Chapter 1 are mainly discusses about the research background, problem statement, research objectives, research question, and research significance and hypotheses of research of the hotel industry. Then, Chapter 2 includes the reviews of the literature related to the topic of the research. The selected literature must be analyze and synthesize logically. Basis of the development framework for the research are usually formed by the analysis of literature. Besides, relevant theory of the study will also be discussed by referring to the past studies. Moreover, the theoretical or conceptual framework must be comprised in this chapter. Hypotheses will be developed. In chapter 3, the types of techniques and methods used are determined. For instance, they are sampling size, populations, variables and measurements, data collection types and methods, and data analysis techniques. All these methods and techniques used must be explained and justified. There were two main elements discussed in chapter 4which are the analysis results attained and the interpretation of the results. These results are obtained from surveys/ pilot tests. Before showing the tables/ diagrams the interpretation of result in text must be presented. Lastly, Chapter 5 will features the finding of the study upon which a conclusion meets the objectives set. Furthermore, the overall of the study will be concluded in this chapter.

1.8 Conclusion
This part is introductory to talk about variable and the influence of consumer intention to stay in green hotels in this study is leading the formation of the objectives, questions, and hypotheses. There will have total four independent variables that determined the consumer intention to stay at green hotel.


1.0 Introduction

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In Chapter 1, contents included will be the summary of research project. Chapter 1 consist of six parts which included research background, problem statement, research objectives, research questions, hypotheses of study and significance of the research study.

1.1 Research Background

Malaysia is a federation consisting of Sabah and Sarawak, also known as East Malaysia and the southern part of the Malay Peninsula, formerly Malaya which is also known as West Malaysia (Cheah, 2002). Diversity is one of the key attractions of Malaysia with the extreme contrasts in the country (The Tourist Development Corporation of Malaysia, 2013). According to Malaysia Tourism Satellite Account (2013) reported that there is increasing 15.5 million number of domestic tourist from 115.5.million in 2010 to 131.0 million in 2011. Based on Saaid, Executive Director of Malaysian highlighted that the hotel industry is growing potentially due to contribution of tourism (Jaafar, Toh & Sukarno, 2011). According to Business Dictionary (n.d.), hotel is defined as a commercial establishment which provides the guest services, meals and lodging while the least requirement of a hotel is the institution is required to have at least 6 bedrooms and at least 3 rooms with bathroom facilities. Based on the level of service provided by hotel, hotel can be classified into economy or luxury hotel while economy hotel also known as budget hotel which meet the basis need of customer by offering clean and tidy rooms (Abhijeet, 2013).

Budget hotel provides rooms and meals at a lower cost and is considered as lowest category in hotel industry (hotelarcopalace, 2012). It is an alternative for the customer who just wants to have a simple room with a bed and shower (Colbu & Scutariu, 2008). The service provided by the budget hotel in Malaysia might be better than one star hotel (Ukessay, 2015). The price range of budget hotel can be as low as RM80 to RM150 per night and budget hotel allows hourly renting for the rooms (Tourism Malaysia, 2012). There are many constructions of budget hotels happen in Sabah especially in Kota Kinabalu and lead to increase competition among budget hotels (Fong, 2007).

1.2 Problem Statement

President of Malaysia Budget Hotel Association (MBHA) revealed that the amount of budget hotels in Malaysia is increasing and domestic tourists are the majority number to patron the budget hotels (Mybajet, 2013). Therefore, this was a trend in the tourism sector, revealing that budget hotels played an important role within the hotel industry (Abdullah, Ishak, & Farah, 2012). Xie & Chaipoopirutana (2014) pointed out that the key of hotel’s success is tourists’ satisfaction. Therefore, budget hoteliers need put efforts to differentiate their products and services and improve the local tourists’ satisfaction. Besides that, there are many tourists are concern about their budget and save their money. They look for cheaper and budget hotel to stay (Mybajet, 2013). They also become rational and preferred “use less to enjoy more” (Tan, 2014). The number of consumers that turn into internet sites and other related sites to make reviews and complaints about hotel services has increased (Tyrrell ; Woods, 2004). Using internet communication is considered as a source of mass and interpersonal communication (Ohiagu, 2011). A customer complaint that the hotel room is dirty, moreover no towel was provided in the bathroom. The problem unresolved due to housekeeping service is not available at night (TripAdvisor, 2013). According to J.D Power (2012) stated, an unresolved problem will lower customer satisfaction score to 573 out of 1,000 (as cited in Bender, 2012). Based on data of market matrix, the report showed that the global hotel customer satisfaction include budget hotels had declined (Village, 2012). Verm (as cited in Ariffin ; Aziz, 2012) mentioned that evaluation of customer satisfaction is depends on their every single experiences. There are limited researches are conducted about factor that affecting customer satisfactions towards hotels, but it is not focus on budget hotels in Malaysia. For example, the study of Forizia, Zadeh, ; Gilani (2013) which investigated the customer satisfaction in 3 stars hotels in Malaysia. In addition, there are limited researches which investigate SERVQUAL model and price all together. Furthermore, there are limited researches to investigate customer satisfaction towards budget hotels in Malaysia in term of these six variables. Besides that, there are yet new aspects and defects to be enhanced in consumer satisfaction (Forozia, Zadeh, ; Gilani, 2013). There are numerous viewpoints and measurements were considered to enhance the level of satisfaction, they used significant variables however the important of SERVQUAL model and price still requires further thought.

1.3 Research objective

1.3.1 General Research Objective

The main objective of this research is to examine the factors that affecting customer satisfaction among local tourists toward budget hotels in Malaysia.

1.3.2 Specific Research Objective

1. To examine the relationship between reliability and customer satisfaction among local tourists toward budget hotels in Malaysia.

2. To examine the relationship between assurance and customer satisfaction among local tourists toward budget hotels in Malaysia.

3. To examine the relationship between tangibles and customer satisfaction among local tourists toward budget hotels in Malaysia.

4. To examine the relationship between empathy and customer satisfaction among local tourists toward budget hotels in Malaysia.

5. To examine the relationship between responsiveness and customer satisfaction among local tourists toward budget hotels in Malaysia.

6. To examine the relationship between price and customer satisfaction among local tourists toward budget hotels in Malaysia.

1.4 Research Question

Based on our research objectives, questions constructed as below that have to be

answered after completion of research study:

1. Does reliability affect customer satisfaction among local tourists toward budget hotels in Malaysia?

2. Does assurance affect customer satisfaction among local tourists toward budget hotels in Malaysia?

3. Do tangibles affect customer satisfaction among local tourists toward budget hotels in Malaysia?

4. Does empathy affect customer satisfaction among local tourists toward budget hotels in Malaysia?

5. Does responsiveness affect customer satisfaction among local tourists toward budget hotels in Malaysia?

6. Does price affect customer satisfaction among local tourists toward budget hotels in Malaysia?

1.5 Hypotheses of study

H1: Reliability has positive relationship with the customer satisfaction among local tourists toward budget hotels in Malaysia.

H2: Assurance has positive relationship with customer satisfaction among local tourists toward budget hotels in Malaysia.

H3: Tangibles has positive relationship with the customer satisfaction among local tourists toward budget hotels in Malaysia.

H4: Empathy has positive relationship with the customer satisfaction among local tourists toward budget hotels in Malaysia.

H5: Responsiveness has positive relationship with the customer satisfaction among local tourists toward budget hotels in Malaysia.

H6: Price has positive relationship with the customer satisfaction among local tourists toward budget hotels in Malaysia.

1.6 Significance of the Study

This research is able to devote to the budget hoteliers that they may have a better understanding of what the influencing factors are local tourists emphasize. Besides, they have an in-depth insight of hotel customers priority concern in budget hotels businesses. Hence, they can develop a suitable and outstanding marketing strategy or selling preposition that can maximize local tourist’s value and provide good services to them. In addition, they may become an outstanding hotelier and gain the competitive advantages that differentiate from competitors in order to increase the business profitability, reputation and popularity. Besides, it may provide a springboard to success in hotel business and operate the business in a right and success path. Through this study, budget hoteliers will get the useful information about these influencing factors that can strive in the high competitive field in order to satisfy local tourist needs. Besides that, it had benefited academics and educators; they may have in-depth information and knowledge about the factors that can affect the local tourist satisfaction in related field. It is also contributes to future researcher, especially research on customer satisfaction among local tourist toward budget hotels. They can use the hypothetical contribution as evidence and support. Other than that, this study had researched SERVQUAL model and extra one factor which is price. Uniquely, it is distinct from previous researches which only make a research on SERVQUAL model. Exclusively make a research on price factor due to poor Malaysia’s economy and changing consumer spending behaviours. Consumers concern about their budget and expenses. Furthermore, hotel agencies will have a superior comprehension on budget hotel customer even students in term of their satisfaction. In this study, it gives an adequate information and data to hotel agencies to determine most influencing factors. In addition, it gives a chance for hotel agencies to enhance their competitive advantages.

1.7 Definition of key variable

dependent variable

Phenomenon: The factors that affecting customer satisfaction among local tourists toward budget hotels in Malaysia

Examples of variables related to the factors that affecting customer satisfaction among local tourists toward budget hotels in Malaysia

sea level

2.the amount of carbon emission

3.the amount of rainfall

1.8 Conclusion

Chapter 1 provides a basic understanding of the study of the factors that affecting customer satisfaction among local tourists toward budget hotels in Malaysia. This chapter also provide a fundamental guideline for further development of the study. Further discussion of this research will be carried out in Chapter 2.


2.0 Introduction

The conceptual framework and the six core determinants related to the factors that affect customer satisfaction among local tourists toward budget hotels in Malaysia, reliability, assurance, tangibles, empathy, responsiveness and price used in proposed conceptual framework will be discussed in details in this chapter. Finally, Chapter 2 also will include with all hypotheses formed to test the relationship between these factors and customer satisfaction among local tourists toward budget hotels.

2.1 Review of Literature

2.1.1 Customer Satisfaction

Satisfaction was defined as whole performance evaluation based on all prior experiences with the firm (Jones et al., 2000). Satisfaction can be influenced by objective factors such as product and service features, and also determined by subjective factors such as emotions and customer needs (Markovic et al., 2010). In fact, satisfaction holds an essential role in creating value for customers (Tanackovic, 2013). In order to success in any business, customer satisfaction definitely is the critical factor (Gronoos, 1990). Satisfaction level is the outcome of the discrepancy between expected and actual performance. For example, positive disconfirmation as known as satisfaction will happen when product or service performs better than expected (Oliver, 1980). Furthermore, customer satisfaction is also outcome of customer’s perception of the value gained in a relationship or transaction, comparing to competitors (Blanchard & Galloway, 1994).

Other than that, customer satisfaction considered as a starting point to create and strengthen customer loyalty, hence long-term relationship with customers can be developed (Gandolfo, 2010). In order to improve customer loyalty, management approach focused on customer satisfaction was effective, at the same time enhanced the good image of touristic place (Gandolfo, 2010). A satisfied customer spreads positive Word Of Mouth, the effect was better than conventional advertising (Villanueva et al., 2008). The level of deep analysis and understanding about motivators and knowledge of customer satisfaction are the key points for the business success of hospitality services (Gutiererez-Sanchez et al. 2011, p. 18). Besides, a small increment in customer satisfaction will enhance customer loyalty dramatically in hotel industry (Carev, 2008). Room qualities, value and employee quality are the main reasons that affect hotel customer satisfaction (Choi & Chu, 2001).

2.1.2 Reliability

Reliability in SERVQUAL model is the capability to carry out the service accurately and dependably as promise (Van Iwaarden & Van der Wiele, 2002). Dependably is defined as the service provider is able to provided what is needed and to be trusted while accurately is defined as service provider is able to achieve the outputs that are correct. High service reliability refers to the error-free performance provided by the service provider. For example, charity fund is distributed rightfully, car is well-tuned after maintenance and train is arriving on schedule (Meriam Webster, n.d.). Reliability is assumed to affect the costs and demand of customers and defined as the probability that service provider is able to meet the predetermined (Boronico & Moliver, 1997). Reliability of service includes complaint handling, pricing and promises delivery (Rahman, Jamil, and Iranmanesh, 2014). In handling customer complaint, satisfaction of the customer can be increased if the employee is capable to solve the problem and is competent (Bitner et al., 1990). Satisfaction of complain means the satisfaction of the customer to the service provider’s response to the customer’s complaint (Stauss, 2002). Besides, customers compare the expectation and the perception of the company’s delivery performance in order to evaluate their acceptability (Demoulin ; Djelassi, 2013).

2.1.3 Assurance

According to Merriam Webster (n.d.), assurance is defined as the confidence of manner. Credibility, competence, security, courtesy and attributes of communication are the elements in service assurance (Parasuramen ; Zeithaml, 1985). The ability of company employees use their courtesy and knowledge to inspire confidence and trust of the customers is the meaning of

service assurance as well (Schneider ; White, 2004). The components in assurance can be elaborate as the courtesy embraces admiration, consideration and politeness. Communication that keeps customers always informed. Competence refers to the required knowledge and skills to