Customer Satisfaction Oyo Room
Customer Satisfaction Oyo Room
Customer Satisfaction Oyo Room
Abstract: OYO Room, an online hotel booking service organization is getting popularity all over India for their innovative and
technology based services. The customers are becoming tech-savvy and are using Internet for booking hotels online. It is important to
know the factors that are determining the consumer’s changing behavior. The purpose of the paper is to understand the factors
influencing customer’s decision in stay at OYO rooms. An exploratory study using Purposive sampling survey was carried out for the
purpose. Principal Component Analysis conducted on 220 responses revealed five factors that explained 59% of the variation in
perceived service quality dimensions. The factors were found to be valid and reliable. Chi-Square analysis revealed that customer
demographics play a significant role in frequency of use of digital wallets for payment. The contribution of the study is that it develops an
additional insight to understand consumer behavior in online hotel booking services.
I. INTRODUCTION
E-booking means making a reservation or appointment for a service via the internet. Online hotel reservations are a popular method for
booking hotel rooms. Travelers can book rooms on a computer by using online security to protect their privacy and financial information and
by using several online travel agents to compare prices and facilities at different hotels. Prior to the Internet, travelers could write, telephone
the hotel directly, or use a travel agent to make a reservation. Nowadays, online travel agents have pictures of hotels and rooms, information
on prices and deals, and even information on local resorts. Many also allow reviews of the traveler to be recorded with the online travel
agent. Online hotel reservations are also helpful for making last minute travel arrangements. Hotels may drop the price of a room if some
rooms are still available. Philip Kotler et al, (2013) renowned authors in the field of marketing experimented that, online travel agents offer
customers the opportunity to conveniently book travel at discount prices. However, they make money only when visitors go to their Web
sites and book travel.
OYO rooms, commonly known as OYO, is India‟s first technology driven network of standardized branded budget hotels in the country. It
started in 2012 and currently it is a chain of hotels and its goal is to change the way people stay away from home.OYO is providing variety
of hotel rooms, flagship, studio stays, long stays and oyo bazaar to the customers.
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February 2018, Volume 5, Issue 2 JETIR (ISSN-2349-5162)
CHARACTERISTICS NO. OF % OF
RESPONDENT RESPONDENTS
S
GENDER MALE 116 52.7
FEMALE 104 47.3
AGE (In Years) <25 23 10.5
26-40 168 76.3
40-55 25 11.3
>55 4 1.9
EDUCATION HIGH SCHOOL OR LESS 20 9.1
GRADUATE 89 40.5
POST-GRADUATE 104 47.2
PhD and Others 7 3.2
INCOME <25000 26 11.8
RANGE/MONTH (In 25000-50000 53 24
Rs.) 50000-75000 54 24.5
>75000 115 52.7
OCCUPATION Service 26 11.8
Business 28 12.7
Others 42 19.1
124 56.4
FREQUENCY OF Light users (<3 times/year) 54 24.5
USAGE Medium users(3-5 times/year) 76 34.5
Heavy users (>5times/year) 90 41
Major Male respondents were having age group of 26-40 who were post-graduate and were having household income more than Rs.75000
per month. Most of the respondents were heavy users and belonged to Service occupation. (Refer Table 1)
The dimensionality of the scale was initially assessed through principal components analysis (Hair et al., 2010). The criterion followed for
the extraction of the factors was to have an Eigen value higher than 1. The items having factor loadings less than 0.5 were eliminated (Hair et
al., 2010). Finally, five factors, all having Eigen values of unity and above were extracted (Refer Table 3). The individual dimensions of the
proposed instrument explained total variance exceeding 59 per cent, suggesting the appropriateness of the process ( Refer Appendix). Based
on shared meaning on the items of each factor they were named as- Reliability, Tangibles, Empathy, Assurance, and Responsiveness. The
factors were checked for reliability. The Cronbach‟s alpha values from the SPSS output for each component are greater than 0.7 (Refer Table
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February 2018, Volume 5, Issue 2 JETIR (ISSN-2349-5162)
2). A table with factors loadings from rotated component matrix is presented in appendix for better clarity of the findings from Principal
Component Analysis and Reliability tests.
Table 3: Tables depicting KMO and Barlett’s test and communalities fro Factor Test
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .820
Bartlett's Test of Sphericity Approx. Chi-Square 1172.108
df 153
Sig. .000
Communalities
Initial Extraction
Employee behaviour 1.000 . 758
Assured and valued Service 1.000 .766
Premium Location 1.000 .657
Easy Booking Process 1.000 .879
Toiletries and kits 1.000 .550
Cheap Prices 1.000 .660
Word of Mouth and Past experience 1.000 .589
WiFi and other facilities 1.000 .749
Safety of valuables and customers 1.000 .839
Food & Beverages provided by OYO 1.000 .894
Best Payment Options 1.000 .813
Rooms availability 1.000 .712
Hygiene and Neatness in rooms 1.000 .779
Prompt and fast response 1.000 .694
Towels, Sheets and Blankets 1.000 .859
Easy Cancellation Process 1.000 .714
Smooth Refund Process 1.000 .726
Ambience and comforts during stay 1.000 .493
Extraction Method: Principal Component Analysis.
Employee Food and Beverages Best Payment Assured and Fast and Prompt
Behaviour Option Valued Service response
Premium Towels, Sheets & Easy availability of Easy Cancellation Smooth Refund process
Location Blankets Rooms Process
Safety of
Valuables and
customers
After the factor analysis, five major factors were shortlisted. The above table shows that OYO rooms should focus upon Empathy, Tangibles,
reliability, Assurance and Responsiveness to keep customers happy and should try to maintain consistency in all the important factors.
Table 4: Table Depicting the Relationship of the Satisfaction with Frequency of Use OYO Rooms
Correlations
FREQUENCYUSAG
Satisfaction E
Satisfaction Pearson Correlation 1 .012
Sig. (2-tailed) .857
N 220 220
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February 2018, Volume 5, Issue 2 JETIR (ISSN-2349-5162)
As per table 4, the results of correlation tests are showing a significant relationship between customer‟s satisfaction level and their frequency
of using OYO room‟s service. The significance value is .857 which is going towards 1, it shows that satisfy customers are using OYO rooms
service frequently.
We continue to our second research objective which relates to identifying the effects of the OYO Customers‟ characteristics on his/her
frequency of use of services. For that, relevant Cross-tabulations using Chi-Square tests were conducted. A composite table depicting the
implications of Demographic variables on frequency of use is presented in Table 5 which is being followed by the explanations from Chi-
Square analysis.
Table 5: Composite Table Depicting the Relationship of the Satisfaction with Frequency of Use OYO Rooms
As per the given table, the results have shown that Age, Income, Occupation, Education level, and Gender here is a significant influence on
customer‟s decision making in stay in OYO rooms. Males are more tech savvy and more frequent users of OYO rooms. People belong to age
group of 26-40 who are in service or doing their business are more frequently using the OYO rooms. They are using OYO rooms because of
lesser prices.
VI. CONCLUSION
There is a dearth of research in determination of factors affecting customer‟s satisfaction in OYO room‟s service. The study develops
better understanding of customer‟s decision making factors in context to OYO rooms stay. The findings ensure that through maintaining
important factors and quality services, OYO service vendors can easily retain customers. The research showed that the satisfaction level will
bring customer‟s frequency of usage. The demographics are significantly affecting the frequency of using OYO rooms. The research will
help OYO Rooms to have a comprehensive, holistic and clearer understanding of factors that influence the satisfaction level of Indian
consumers.
VII. LIMITATIONS
This study involves a number of limitations that need to be acknowledged. First, the primary limitation of the research relate to the small
sample size, as generalizations are difficult to make with small sample sizes. Second, the 18 Service Quality items were selected through
review of literature. Results may differ if different items were selected or different scales are used. Therefore, results cannot be generalized
for other service contexts.
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APPENDIX
Tables showing Factor Analysis
Total Variance Explained
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