Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Factors Influencing Of Tourist Loyalty: A Study on Tourist
Destinations in Malaysia
Ahasanul Haque and Abdul Highe Khan
This study was trying to explore factors that lead to tourist’s loyalty in
terms of choice tourist destinations. This research was conducted three
stages of data analysis for instance: descriptive statistics, exploratory
factor analysis; and multiple regression analysis to test the hypothesis.
Multiple Regressions was employed to identify the relationship among the
variables. Results showed that Destination Image, Perceived Value and
Service Quality have a positive relationship with tourist loyalty on tourist
destination in Malaysia. Explore of significant factors influencing tourist
satisfaction for making strategic marketing plans to encourage tourists to
visit in Malaysia. Incompletion, the outcome of this study provides a
useful source of information for global marketers to understand and
satisfaction, finally positive loyalty towards tourism destination in
Malaysia.
Keywords: Destination Image, Perceived Value, Service Quality, Tourist Loyalty,
Malaysia.
Introduction
Among all the service industries tourism is one of the largest industries in the world and
according to Tourism Malaysia (2011), tourism industry has become the fastest growing
economic sectors globally over the past six decades. Tourism industry has a great
economic influence on a destination and a tourist country. For this reason tourist
satisfaction is essential to survival of any tourist destination. In tourism industry tourist
satisfaction is the most common research area and identifying tourist satisfaction factors
are important for destination managers. Like other study, there are objective of this
study. The main objectives of the study is to identify how destination image, perceived
value , service quality influence tourist loyalty in Malaysian tourist destination In
Malaysia, tourism industry has become one of the important service sector that
contributing for country’s economic development. Tourism industry is the fifth largest
industry among all the service. In fact Malaysia ranked 9th position out of the top 10
most visited tourist countries in terms of international tourists arrival in the year of 2009
and 2010 (United Nation World Tourism Organization, 2011).
Ahasanul Haque, Faculty of Economics and Management Sciences, International Islamic University
Malaysia, Malaysia. E-mail:belaliium@gmail.com
Abdul Highe Khan, Faculty of Economics and Management Sciences, International Islamic University
Malaysia, Malaysia. E-mail: khanabdulhighe@yahoo.com
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
If we see the tourist arrival in Malaysia from 2000 to 2011, we can see number of tourist
increasing every year in Malaysian tourist destinations.
Table 1: Number of tourist arrival in Malaysia from 2000 to 2011
Year
Arrivals
Receipts (RM
(Millions)
Billons)
2011
24.7 Millions
58.3 Billons
2010
24.6 Millions
56.5 Billons
2009
23.6 Millions
53.4 Billons
2008
22.0 Millions
49.6 Billons
2007
20.9 Millions
46.1 Billons
2006
17.4 Millions
36.3 Billons
2005
16.4 Millions
32.0 Billons
2004
15.7 Millions
29.7 Billons
2003
10.5 Millions
21.3 Billons
2002
13.2 Millions
25.8 Billons
2001
12.7 Millions
24.2 Billons
2000
10.2 Millions
17.3 Billons
Source: Tourism Malaysia (2012)
LITERATURE REVIEW
Destination image
Destination image is an essential factor for tourist places and better image of the
destination bring more tourist towards destination (Hsu et al., 2004). If any tourism
authority can create positive image of the destination on tourist mind then it is easy to
be successful in tourism business (Hankinson, 2004). A strong destination image gives
competitive advantage from the competitors (Mykletun et al. 2001; Fan, 2006).
Destination image or image of the country has great influence on the decision making
process of the tourist. If the tourist perceive positive and favorable destination image on
their mind then they like to often visit their desired tourist place (Laws, 2002; Beerli,
2004; Bonn et al, 2005). According to Hall and O’Sullivan (1996), there are three
essential factors that help to build a destination. First of all, word-of-mouth by the
tourists. If the tourist spread positive word of mouth then it is easy to build a strong
image of a destination. Secondly, image making of media and lastly policies and interest
taken by destination government. If the management of particular destination takes
initiative to build positive destination and work according with it then it helps to build
destination image of a tourist place. Besides that Destination image play an important
role to choose the tourist destinations. Positive destination image enhance chance to
visit any favorite destination place and it helps to take decision about any particular
destination (Coshall, 2000 ; O’Leary and Deegan, 2005).
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Perceived value
Perceived value is common and very essential issue of marketing area and is an
important element in relationship marketing (Dumond, 2000; MSI, 2001; Oh, 2003).
Perceived value is defines the comparison of the benefits or output with the price of
product or service (Zeithaml, 1988; Bigne´ et al., 2000; Teas and Agarwal, 2000).
Perceived value is related with customer satisfaction. If customers get positive value
then they are satisfied and if they do not get negative value then they are dissatisfied
with product or service. According to (Grewal et al., 1998; Bigne´ et al., 2000; Cronin et
al., 2000), there are two factors in perceived value; (1) benefits of the customers, for
instance, economic benefit, social benefit, relational benefit and (2) sacrifice or
expenses of the customers, for instance price of product or service, time spend
perceived risk.
Service quality
Service quality is the customer’s evaluation of expected service and the actual service
(Parasuraman et al. 1985). According to Zeithaml & Bitner, (2003), service quality is
customer’s judgment of standard or quality of the service. Service quality is the core of
business prosperity of service industry (Shahin & Dabestani, 2001). Better service
quality brings more customers and generate more revenue. Tourist service is very
sensitive, intangible, and imperishable. Today’s tourists are very conscious about the
service quality of the tourist destination. If the service quality of any tourist destination
meet the expectation of the tourist then it is easy to attract more tourists towards that
destination (Kamndampully and Duddy, 2001). By considering the importance of service
quality of tourist destinations, managers of every tourist destinations are very concern to
improve the quality of the service. By improving the service, managers can satisfied
their tourist and make them loyal towards the destinations (Tian-Cole & Cromption,
2003). According to Sparks and Westgate (2002), poor service quality of any particular
service industry hamper the potentiality of that business and it influence customers to
switch service providers. It is also applicable for tourism industry. If any particular tourist
destination fails to provide better service then customers will switch to another
destination (Sparks and Westgate, 2002).
Tourist loyalty
The important goal of every tourist destination is to make tourist loyal. According to
(Oppermann 1999, Yoon and Uysal, 2005), when tourists visit any particular tourist
destination multiple times then it is called tourist loyalty. According to Chen and Gursoy,
(2001), tourists revisit perception of any particular tourist destination refers tourist
loyalty. When any tourist perceives positive experience about any destination then he or
she thinks to revisit the destination. When tourist is loyal towards any destination then
he or she recommends others to visit that destination (Oppermann, 2000, Chen and
Gursoy, 2001). According to Yoon and Uysal (2005), if tourist gets better service from
any tourist destination then tourist will be loyal towards the destinations. Besides that
positive word of mouth also influence tourist to visit any particular destination.
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Destination image and Tourist loyalty
If tourists are satisfied towards any particular tourist destinations then they are
interested to visit that destination many times. They are loyal to destinations and they
spread positive word of mouth to their family members, relatives and friends (Chen and
Tsai, 2007; Yoon and Uysal, 2005). It is great success for any tourism destinations to
make any tourist loyal towards them, because one loyal tourist helps to generate more
revenue. Based on the research of Mechinda et al. (2010) it was proved that destination
image influence destination loyalty. They conducted research in Tourism industry in
Pattaya, Thailand. Not only destination image influence destination loyalty, destination
familiarity also influence destination loyalty. Related research also conducted in IxtapaZihuatanejo, Mexico by Hernandez-Lobato et al. (2006) and they also found that
destination image is related with destination loyalty.
H1: Destination Image has a positive effect on Tourist Loyalty.
Perceived Value and Tourist Loyalty
Perceived value is an important antecedent of customer loyalty and perceived value has
direct relationship with customer loyalty in service industry (Yoo et al., 2000; Lemon et
al., 2001; Cengiz & Yayla, 2007). Baker & Crompton, (2000) also found positive
relationship between perceived service value and loyalty in tourism industry. They
directed a research on golf travelers and mentioned that positive perceived value refers
to loyalty of the golf travelers. Similarly Chen & Chen (2010) also proved significant
connection among perceived value, satisfaction and behavioral intentions for heritage
tourists. It is essential to consider that value of the money or time is considerable for
every single tourist.
H2: Perceived Value has a positive effect on Tourist Loyalty
Service quality and Tourist loyalty
To find out the relationship with service quality and customer loyalty, research were
conducted in Turkey and Malaysia. Aydin and Özer (2005) conducted research in
Turkey and Ndubisi, Wah and Ndubisi (2007) conducted research in Malaysia. They
found influential relation between service quality and customer loyalty.
It is common psychology of customer that if they are happy of service quality then they
are going to be loyal. Research was conducted by (Bloemer et al., 1998; and Ganesan,
2007) to find out how service quality influence customer loyalty and he found that
service quality can influence customer loyalty positively and significantly (Akbar et al. ,
2010; Cronin et al., 2000). According to Al–Refaie et al. (2012), service quality of the
tourist destination positively influences tourists' overall satisfaction, that positively
influence destination loyalty.
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
H3: Service Quality has a positive effect on Tourist Loyalty.
Methodology
To accomplish research, we generated 22 items from three independent variable
(Destination Image, Perceived Value, and Service Quality) and one dependent variable
Tourist Loyalty. We used pilot study with 60 respondents from different popular tourist
destination in Malaysia. During pilot testing we found there are some mistakes in
questionnaire. After modifying questionnaire we distributed 350 questionnaires at
various tourist destinations in Kuala Lumpur , Selangor, Putrajaya, Negri Sembilan,
Melaka, bJohor and Penang as well as Kuala Lumpur International Airport (KLIA). This
research were employed a survey via convenient sampling procedure. Respondents
were informed about the purpose of the research before distributing the questionnaire.
The respondents for this research were composed of tourists who visited different
tourist destination in Malaysia from June 2012 to August in 2012. The survey was
conducted over a three months period. In addition, each of the named items was
measured using a five point rating scale (1= strongly disagree; 2 = disagree; 3= neutral;
4 = agree; and 5 = strongly agree). After examining the questionnaires, this research
kept only those questionnaires that were fully completed by the respondents. For the
successful completion data this research has kept 270 questionnaires for further
analysis.
The conceptual research model of this study:
Destination Image
Tourist Loyalty
Perceived Value
Service Quality
Result and Discussion
Demographic profile of the respondents
The results of this study have been clearly explained in this chapter. SPPS 18 version
software was used to analyze data. Descriptive analysis and was conducted to find out
demographic background of the tourist. The demographics part comprise of gender,
age, marital status, country of residence, academic qualification, profession, monthly
income, number of visitation in Malaysia, name of destination visited. In terms of
respondent’s gender, table 1 shows that 57.4% of respondents were male and 42.6 were
female. The classification of samples in terms of their marital status presents that 46.7 % of
respondents were single, 53.3 % respondents were married. In case of respondents age
most respondents are between 25 to 34 years old. Their percentages are 42.2 percent.
Second highest percentage of respondents belongs to age are 35 and above. This
group represents 28.5 percent. Percentage of age between 15-24 and below 15
represent 23.3 % and 5.9 % respectively. Among the tourist majority (45.9 %) come
from Middle East. Second highest tourist comes from Asian countries. There
percentage is 23.0.
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Table 2: Demographic profile of the respondents
Descriptions
Frequency
Percentage
Cumulative
(%)
155
115
57.4
42.6
57.4
100.0
16
63
114
77
5.9
23.3
42.2
28.5
5.9
29.3
71.5
100.0
126
144
46.7
53.3
46.7
100.0
37
62
28
124
19
13.7
23.0
10.4
45.9
7.0
13.7
36.7
47.0
93.0
100.0
21
15
129
89
16
7.8
5.6
47.8
33.0
5.9
7.8
13.3
61.1
94.1
7.8
56
70
106
21
13
4
20.7
25.9
39.3
7.8
4.8
1.5
20.7
46.7
85.9
93.7
98.5
100.0
51
92
94
33
18.9
34.1
34.8
12.2
18.9
53.0
87.8
100.0
Gender:
Male
Female
Age:
Below 15
15-24
25-34
35 and above
Marital Status:
Single
Married
Country of residence:
America
Asia
Europe
Middle East
Africa
Academic Qualification
O level or equivalent
A level or equivalent
Graduate (Bachelor)
Master’s Degree
Doctoral Degree
Profession:
Student
Job Holder
Business Owner
Academician
Home Maker
Others
Income:
Below $ 1000
$ 1001-$ 2999
$ 3000- $ 4999
$ 5000 and above
With regard to education of the respondents, highest number 47.8 % of our respondents
were College Graduate (Bachelor). There are some respondents who completed
Masters and Doctoral program. Percentages of Master degree holder were 33.0 percent
and Percentage of Doctoral program were 5.9 percent. A large number 34.8 percent of
the respondents informed that their monthly income is $ 3000- $ 4999, followed by 31.6
percent respondents, who showed their monthly income as between $ 1001-$ 2999.
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Whereas, 12.2 percent respondents’ monthly income is above $ 5000. Professions of
majority respondents are business owner with 39.3 percent, followed by 25.9 percent
job holder, 20.7 percent students and 7.8 percent academician.
It was the first time visitation for most of the respondents (51.5 percent), followed by
30.4 percent respondents visit for second time. Among the popular tourist destination in
Malaysia, majority of the respondents (19.3 percent) visited Petronas Twin Towers,
Kuala Lumpur. Second most visited destination was KL Tower with 17.8 percent.
Followed by Lankawi Island 17.4 percent.
Descriptions
Frequency
Percentage
Cumulative
(%)
139
82
25
24
51.5
30.4
9.3
8.9
51.5
81.9
91.1
100.0
52
48
18
47
5
31
37
32
19.3
17.8
6.7
17.4
1.9
11.5
13.7
11.9
19.3
37.0
43.7
61.1
63.0
74.4
88.1
100.0
Number of Visitation in Malaysia
1st time
2nd time
3rd time
4th time and above
Name of the Destination Visited
Petronas Twin Towers, Kuala Lumpur
KL Tower
Putrajaya Mosque
Langkawi Island
National Mosque, Kuala Lumpur
Cameron Highland
Genting Highland
Batu Caves
Reliability Analysis
To test the goodness of all variables the test that was carried out was the reliability
analysis using the Chronbach’s alpha coefficient. Cronbach’s Alpha was chosen to
analyze the degree of consistency among the items in a construct. The study by Hair et
al., (2010) indicates that the cronbach alpha must be at least 0.70 for the results to be
deemed as reliable. The value for each variable is above 0.70 and it indicates that the
variables are reliable. The result of reliability analysis is given below.
Exploratory Factor Analysis (EFA)
Generally higher factor loading specifies the stronger affiliation of an item to a specific
factor. The findings of this research indicate that each of the three (3) dimensions
namely, Destination Image, Perceived Value and service quality were homogeneously
loaded to the different factors. On the other hand the reliability coefficients of those
three factors are: Destination Image (.751), Perceived Value (.786), service quality
(.868), respectively. On the other hand, KMO index and Bartlett’s test of sphericity
weighed the suitability of the data. According to (Hair et al., 2010), the KMO value
should be higher than 0.5. For this reason the factor loading for all items exceeding the
minimum value of 0.50 were considered in this study. From the analysis we found our
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
KMO value is .684. Beside that
the results of Bartlett’s test of sphericity are all
significant (p= 0.000). Principal components analysis revealed the presence of four
components with eigenvalues exceeding 1, explaining 29.963 %, 16.684 %, 14.982 %
respectively. As a result, the outcome of these tests reveals the suitability of data for
Exploratory Factor Analysis (EFA). Factor analysis also confirmed that the construct
validity of the scales could be performed adequately. Those items that did not meet the
requirement and that were dropped are Destination Image 1 and 6, Perceived Value 3,
4, Service Quality 3, 4, 6.
Table 3: KMO and Bartlett’s Test
Parameters
Value
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy
Bartlett's Test of Sphericity:
Approx. Chi-Square
Df
Sig
.684
2029.862
91
.000
.684
Table 4: Reliability Analysis and Factor Loading
Factors
Destination Image
DI2
DI3
DI4
DI5
Perceived Value
PV1
PV2
PV5
Service Quality
SQ1
SQ2
SQ5
SQ7
SQ8
SQ9
SQ10
Loading
Variance
Explained
29.963
Cronbach’s Alpha
16.684
.786
14.982
.868
.751
.828
.594
.665
.775
.535
.947
.951
.656
.666
.762
.667
.786
.868
.764
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Table 5: Total Variance Explained
Factor
Initial Eigenvalue
Total
Extraction Sums of Squared
Loadings
Cumulative
%
29.963
Total
Rotation Sums of Squared
Loadings
1
4.195
% of
Variance
29.963
Cumulative
%
29.963
Total
4.195
% of
Variance
29.963
3.921
% of
Variance
28.010
Cumulative
%
28.010
2
2.336
16.684
46.647
2.336
16.684
46.647
2.394
17.101
45.111
3
2.097
14.982
61.629
2.097
14.982
61.629
2.312
16.518
61.629
4
1.036
7.399
69.027
Table 6: Regression Coefficient Hypothesis Testing
Hypothesis
Standardized coefficient
(Beta)
Significance
( p value)
Remarks
Destination Image
.378
.000
Supported
Perceived Value
.181
.000
Supported
Service Quality
.445
.000
Supported
Hypothesis 1: Destination Image has a positive effect on Tourist Loyalty
The results of this study show that the association between Destination Image and
Tourist Loyalty is positive. The multiple regression result shows Destination Image has
a beta of .378 and significant p value is .000. The significant value is less than alpha at
0.05 and hypothesis is accepted. Previously it was found in many studies that
Destination Image influence tourist loyalty and behavioral intention in tourist industry
(Court and Lupton, 1997; Hernandez-Lobato et al. (2006); Mechinda et al. 2010).
Hypothesis 2: Perceived Value has a positive relationship with Tourist Loyalty
The results of this study show that the association between Perceived Value and Tourist
Loyalty is positive. The multiple regression result shows Perceived Value has a beta of
.181 and significant p value is .000. The significant value is smaller than alpha at 0.05
and hypothesis is accepted. Chen and Tsai (2008) found positive relation between
perceived value and loyalty. There is also some other empirical evidence that perceived
value has a positive effect on future behavioral intention and loyalty in service industry
including tourism (Cronin et al. 2000; Eggert and Ulaga 2002; Petrick, 2004; Tam,
2000).
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Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Hypothesis 3: Service Quality has a positive relationship with Tourist Loyalty
The results of this study show that the association between Service Quality and Tourist
Loyalty is positive. The multiple regression result shows Service Quality has a beta of
.445 and significant p value is .000. The significant value is smaller than alpha at 0.05
and hypothesis is accepted. As supported by many studies on other countries, confirm a
positive relationship between quality and satisfaction in tourism industry (Baker and
Crompton, 2000; Murray and Howat, 2002; de Rojas and Camarero, 2008; Ruiz et al.,
2009).
Conclusion and Recommendations
This empirical study provides evidence that destination image, perceived value and
service quality of tourist destination are closely associated with destination loyalty. As
tourism is contributing economy of Malaysia, it can be argued that major findings of this
study have significant policy and managerial implications for the country’s core tourist
destinations and support services in tourism. These are fundamental in extending length
of stay, increasing satisfaction and enhancing destination loyalty of foreign tourists.
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