Effect of e-Service Quality on Customer

Engagement Behaviors: Insight from the hotels in

Malaysia

Nur Amira Mohd Ridzuan1, Rasidah Hamid1, Mohd Hanafi Azman

Ong2, Ilma Indriasri Pratiwi³
1 Faculty
of Hotel and Tourism Management, Universiti Teknologi MARA, Puncak Alam,
Malaysia , 2 Department of Statistics and Decision Sciences, Faculty of Computer and
Mathematical Sciences, Universiti Teknologi MARA Cawangan Johor (Kampus,
Segamat), 85000 Segamat, Johor, Malaysia, ³ Faculty of Social Science Education,
Universitas Pendidikan Indonesia, 40154 West Java, Indonesia.

ridzuanna97@gmail.com, rasidah9898@uitm.edu.my, napieong@uitm.edu.my, ilma.indriasri@upi.edu

Tel: +6018-9450325

Abstract

The reopening process has begun Covid-19, especially in the hotel operation.
Therefore, the hotel industry must understand the need to influence customers'
choices through advanced of information technology (IT). This study is intended to
explore the effect of t e-service quality on customer engagement behaviors in
Malaysian hotels. This study was analyzed via PLS-SEM with 247 respondents.
The findings indicate that system availability significantly influences customer
engagement behaviors, followed by efficiency, system availability, privacy/security,
and fulfillment. Based on what this study found, Malaysian hotel service providers
will be able to improve the quality of their e-services to get customers more
involved.
Keywords: Artistic Community; Transposition of Space; Installation Art

eISSN 2514-751X © 2022. The Authors. Published for AMER & cE-Bs by e-International Publishing House, Ltd.,
UK. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-
nd/4.0/). Peer–review under the responsibility of AMER (Association of Malaysian Environment-Behaviour
Researchers and cE-Bs (Centre for Environment-Behaviour Studies), College of Built Environment, Universiti
Teknologi MARA, Malaysia.
DOI: https://doi.org/10.21834/aje-bs.v7i23.410
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1.0 Introduction.
The hospitality sector encompasses many enterprises and establishments concerned with
amusement and customer happiness (Natnaporn & Aeknarajindawata, 2019). Focusing on
comfort, enjoyment, relaxation, and experiences, as defined in meeting customers'
requirements and offering services, defines the quality of the hospitality sector. In terms of
global economic power, the hotel and tourism sectors have expanded considerably in
recent years. As in other Malaysian nations, several sectors actively lure tourists to
Malaysia. Globally, the hotel business is growing at an unparalleled pace. As a worldwide
business, the hotel sector has gained appeal. The hotel sector is quickly expanding (Fong,
Lam & Law, 2017). The issues caused by Corona Virus pandemic (Covid-19) have greatly
affected almost every element of hotel operations worldwide. As social distancing
becomes, the new regular hotel operation needs to be implemented with the rise of hotel
online booking, which is online hotel booking websites (Jiang & Wen, 2020). Pieces of
information technology (IT) advancements, especially in hotel operations, are driving a
radical change in the distribution of product services (Khoo, 2019). Since most reservations
or bookings are now made online rather than offline, the hotel business is more likely to
implement electronic service (e-service) (Ayob, Lan, & Sheringham, 2021). In addition, 3
out of every 4 billion people use electronic gadgets to browse the online hotel booking every
month to make hotel reservations via social media, online travel agencies (OTA), and direct
hotel websites, according to preliminary findings by McDonald (2018). Many people rely on
electronic services because of the growing interest of hotel customers in making
reservations through e-service platforms. To make matters more complex, the Covid-19
pandemic has significantly impacted every aspect of the hotel's overall operation (Jiang &
Wen, 2020), necessitating strict hygiene practices for everyone involved, including service
providers and customers. It is still possible to speed up the deployment of Industries 4.0,
which combines digital technologies such as e-services into individuals' private,
professional, and social lives in the face of pandemics (Jiang & Wen, 2020). The process
of reopening, however, began gradually, and the government has begun to relax some of
the rules. For example, the hotel can now reopen with limited customers to maintain social
distancing and hygiene (Chi & Gursoy, 2020). Due to these challenges, hotel operators can
now promote their services locally and internationally, especially with the development of
e-services, particularly in online hotel booking. This relatively brief break gave them an ideal
chance to improve their online presence, particularly their website, by including more direct
booking platforms like Agoda.com, Booking.com, and Traveloka.com, thereby enhancing
the user experience across all of these online booking platforms (Mauguin, 2020).

2.0 Literature Review.

2.1 E-Service Quality

Electronic service as e-service quality can be described as efforts and performance whose
delivery is mediated by information technology (Rowley, 2006). The concept of service
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quality can be defined as customers' overall evaluation and judgment of the excellence and
quality of e-service products in virtual markets (Parasuraman et al., 2000). The concept of
e-service quality existed from using traditional service quality to evaluate the quality of a
website itself. Based on the researcher's findings, e-service quality refers to a company's
capacity to provide customers with virtual services and meet their needs and expectations
(Husain, 2017). According to Li, Peng, Jiang, and Law (2017), the hotel website is defined
by online lookers and investigated its variables for such e-service quality. It is one of the
crucial ways to communicate with its customer’s online platform (Chen & Dhillon, 2003).
Moreover, Parasuraman et al. (2000) pointed out that quality problems of e-services
should be assessed across the entire online process, from information search to
information search. The e-SERVQUAL scale measured e-service by a core dimension
within this study, including performance, system availability, efficiency, privacy/security,
and fulfillment. On the other hand, the hotel industry is one of those that benefit from
attracting visitors and encouraging them to return. Over the last decade, researchers have
focused on the rise of e-service in the hospitality industry. The hospitality industry
encompasses various businesses and facilities concerned with entertainment and
customer satisfaction (Khoo, 2019).
In contrast to food for needs and necessities, the hospitality industry is distinguished
by its emphasis on comfort, enjoyment, and life. As a result, the hotel industry is the
foundation of the hospitality industry and is rapidly becoming one of the world's fastest-
growing industries. Li, Peng, Jiang, and Law (2017) state that one of the most important
ways to engage with your consumers on the platform is through your hotel's website, which
is determined by online users and whose electronic service quality factors are evaluated
primarily in the research and planning stages of a transaction. Furthermore, the quality of
a hotel's e-services is crucial to its overall service. (Lacalle, 2021). Website quality is used
as a synonym for e-service across many sectors, with a beneficial effect on advertising and
the success of online services. Location details, accepted payment methods, and on-site
amenities are available to visitors, and accommodation reservation information is easily
accessible (Khoo, 2019).

System Availability
The hotel reservation system, for instance, is a method that allows customers to make
secure online reservations. While the procedure is comparable to hotel online booking, the
hotel's booking engine connects directly to its website, avoiding any further expenses for
the property. Using the hotel's online booking system, customers may pick the length of
their stay, the sort of room they like, and any extras and pay using a secure payment
platform (Lacalle, 2021). For instance, Law and Hsu (2006) assess the dimension of the
hotel's website, including the reservation information, hotel amenities, property contact
information, the surrounding region, and website administration, as well as the features
those online users in each dimension value most. The reservation information dimensions
include the room rate, availability, and security of payment, the location map, hotels, and
room conveniences (in facility data), the telephones, address, and e-mail addresses of the

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hotels (for contact details), transportation services to the hotels, airport, and entertainment
venues (for surroundings details), and up-to-date data, multilingual sites, and a rapid
download time are among the essential system availability (for website management).

Efficiency
According to Parasuraman, Zeithaml, and Malhotra, efficiency is defined as the ease and
rapidity with which users access and utilize a website (2005). In other terms, efficiency is
the potential to decrease website consumption or browsing time. When developing a
website, efficiency is often one of the most significant factors to consider since customers
are typically more concerned with usability, requiring relevant information about the goods
and services (Abdullah et al., 2016). On the other hand, most hotel website visitors are
mobile due to the nature of the hotel and tourism industries. Therefore, cell phones, tablets,
and other computing devices can access the website. A decent website must be resizable
and permit these devices' reservations. In addition, delivery and payment information
processing through automatic answers, hotel websites' search speeds, and a well-
structured website are instances of efficiency (Li, Peng, Jiang, & Law 2017). When
customers view a particular e-service of a website as trustworthy, they are more likely to
return to the site and interact with the service in the future (Abdullah et al., 2016).
Moreover, one of the most crucial aspects of designing a website for a market that
places a premium on usability is ensuring visitors can easily find the information they need
about goods and services without wasting time (Abdullah et al., 2016). Value is created,
and customer satisfaction is maintained when a business promptly addresses and satisfies
customer requests (Khoo, 2019). Customers are more likely to return to a hotel with an
improved reservation flow and customer service if their questions and orders are answered
quickly and accurately (Lacalle, 2021). Many hotel website visitors are likely to be on the
go, given the nature of the hospitality and travel industries. As a result, the website will be
visited via mobile devices such as smartphones and tablets, and traditional computers.

Privacy and Security

Privacy and security include measures that prevent unauthorized third parties from
accessing confidential client information at the start and finish of a transaction (Fong, Lam,
& Kaw, 2017). Website security and privacy are frequently discussed in the travel and
hospitality industry in today's internet age. When making an online purchase, customers
are leery about giving their personal information to an untrusted website because they want
to receive better service from that site in the future (Fong, Lam, & Kaw, 2017). These
researchers found that people are hesitant to plan trips using websites or apps for several
reasons, including privacy and safety concerns related to providing personal and financial
information online. Despite the ease of use that internet platforms provide, experts say that
clients may be reluctant to use them due to these concerns. Despite the ease of use that
internet platforms provide, experts say that clients may be reluctant to use them due to
these concerns. Multiple prior studies (Ayob, Lan, & Sheringham, 2021) corroborate these

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doubts by demonstrating a robust correlation between trust and the propensity to make an
online hotel reservation when privacy and security issues exist.

Fulfillment
Orders can only be fulfilled if they are correctly described, delivered on time, and contain
the necessary information. The sustainability of online websites at danger when customers
cannot complete a transaction, things are not delivered on time or at all, e-mails are not
replied to, and essential information needs to be gathered. On-time delivery, order
fulfillment, and appropriate delivery circumstances are all critical components of a hotel's
ability to provide excellent customer service (Fong, Lam, & Kaw, 2017). Electronic services
are judged on customers' satisfaction and engagement on hotel websites to serve them
better. Reservation systems must match the needs and expectations of customers, for
example, by allowing them to rapidly access their personal information and connect with
hotel sites (Khoo, 2019). Customer satisfaction also depends on the correctness of product
demonstration, with the items generated by the customer matching the things requested
and being delivered on time (Khoo, 2019).
On the other hand, the quality of a hotel's customer service depends on its ability to
ensure timely deliveries, accurate reservations, and suitable weather conditions for all
outbound packages. That is because customer happiness is a significant factor in
determining the quality of an e-service. Consequently, website quality is crucial in
facilitating the customer's search for the desired product. Therefore, it should never be a
problem for hoteliers to enhance the customer experiences and ensure their satisfaction
(Ayob, Lan, & Sheringham, 2021).

2.2 Customer Engagement Behaviors

Involvement in an industry's products and organizational operations initiated by the
company or its customers is defined as "interaction" (Beatty et al., 2012). The behavior
aspect of consumer interaction is also described. Numerous personality traits impact how
well a company engages with its customers. The three-way communications networks
focus on customers' online reviews of their most recent dining encounters. Furthermore,
hotels have different sectors and operations in the hospitality industry. The essential
strategy for customer engagement with hotel service providers is that most customers
expect interaction from hotel service providers before and during their journey to improve
their experience (Gounaris et al., 2010). In addition, customer engagement begins during
the first interaction with the customer and will last even after the customer has experienced
good service. Thus, the perceptions, assessments, and opinions expressed in these user-
generated online reviews comments often significantly impact the hotel business and
prospective customers (Roy et al., 2018). This interaction has an impact on businesses in
a variety of ways, including word-of-mouth (WOM) activities, references, and feedback,
customer assistance offered voluntarily, web posts and blogging, brand groups
participation, product creation engagements, and other behavioral manifestation that may
affect the business and its product (Gounaris et al., 2010; Roy et al., 2018). To enhance

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customer engagement with the hotel, the hotel provider must provide the customers with
easy-to-use and trustworthy websites because the customers will reveal their engagement
when they have experienced a good service which the online hotel booking is easy to
access and the information provided is easy to understand by customers to make a hotel’s
reservation. As a result, the customers recurring satisfaction with the hotel websites might
return and use the service offered, thus developing customer engagement behaviors
towards the hotel websites. Because of the proliferation of social media platforms,
business-to-customer and customer-to-customer interactions have evolved into a three-
way contact network involving the customer, the hospitality company, and potential
customers. The majority of individuals browse online reviews before booking a reservation.
By reading other customers' reviews about other customers’ experiences on an online hotel
booking website, prospective guests can learn more about the hotel of their choice and
improve their standards as they make their booking decision (Ayob, Lan, & Sheringham,
2021). Online hotel reviews are a reliable source of information since they are constantly
updated and contain more recent data than what is provided by the service suppliers
themselves. When examining the internal structure and formation systems of customer
engagement in online booking reviews. The previous researchers from Roy et al. (2018)
indicated that customer engagement significantly influences the customers to keep
connected and engage with the hotel service provider. Moreover, within the online review
from the customers, the hotel service provider can interact with the customers, which
enables them to answer all the questions and fulfill the customer requirements without a
doubt.

2.3 Theoretical Framework

Table 1: Theoretical Framework

Source: (Parasuraman et al., 2000; Hossain & Hossain, 2011)

3.0 Methodology
According to Creswell (2014), quantitative analysis and surveys were used in this study to
determine the quantitative influence of the targeted latent components. The researchers
use a quantitative approach to collect information from potential respondents using an
appropriate sampling method and distributed the questionnaires through the online survey

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platform. Survey research is a technique that may focus on a single group of the targeted
population that is being studied. In this study, the researcher uses a causal research design
where this study is conducted to determine a cause-and-effect relationship between two
and more variables. In addition, the researcher uses causal research, known as
explanatory research, to identify the cause-and-effect relationship where it focuses on the
analysis of situations or specific problems to explain the pattern of relationships between
variables (Hair et al., 2017). A well-designed questionnaire is assigned. Since this study
fundamentally aims at the influence of e-service quality on customer engagement behavior,
the researchers used the non-probability multi-stage sampling technique where the
population elements' sampling frame is unavailable. This study's non-probability sampling
technique combines judgmental and purposive-convenience sampling techniques. In this
study, the researchers chose 247 participants who agreed to participate. The details
characteristics of the targeted population are that the respondent must be an adult who
already has a job and income, and the respondents can be Malaysian or non-Malaysian
citizens; thus, the respondent must have experience visiting a hotel in Malaysia. Besides,
in the first stage, judgmental sampling was applied with several important characteristics:
the respondent must be an adult who already has a job and income. The respondents must
have experience visiting a hotel in Malaysia. After that, purposive-convenience sampling
was applied at the final stage to get a response from the respondent. The survey was
distributed using Google Forms and circulated via social media such as Facebook. Hossain
(2011) provided the customer engagement behaviors variable, and Hahn et al. (2017)
provided the e-service quality variable of fulfillment, system availability, efficiency, and
privacy/security for this study's research questions. Since this study attempts to investigate
the new conceptual framework simultaneously, the statistical analysis used the Structural
Equation Modeling using Partial Least Squares (PLS-SEM) (Hair et al., 2017).
Bootstrapping was employed to determine the significance test in this PLS-SEM
experiment, which is more trustworthy than the usual t-test (Hair et al., 2017). According to
Hair et al., (2017), the recommendation's 5000 sample replications were used to calculate
empirical t-statistics and the Bias Corrected (BCa) bootstrap (2017).

4.0 Findings and Discussion

4.1 Measurement Model Analysis

Table 1 shows that all items measuring the targeted variables have a factor loading value
greater than 0.70. Other criteria, such as Average Variance Explain (AVE), Composite
Reliability, and Cronbach's Alpha for each variable which are fulfillment, system availability,
efficiency, privacy/security, and customer engagement behaviors also meet the PLS-SEM
analysis's minimum requirements of 0.50 and 0.70. (Hair et al., 2017). In terms of
discriminant validity, Table 2 showed that fulfillment, system availability, efficiency,
privacy/security, and customer engagement behaviors were distinguishable from the others
because the HTMT ratio value was less than 0.90. (Henseler et al., 2015). As a result, it
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confirms that each variable in this measurement model has optimal convergence and
discriminant validity.

Table 2: Convergent Validity for Measurement Model

Indicator Loading AVE γ α

Fulfillment
It delivers orders when promised (FUL1)
0.824*
This site makes items available for
delivery within a suitable time frame 0.889*
(FUL2) 0.753 0.924 0.890
It quickly delivers what I order (FUL3)
0.894*
It sends out the items ordered (FUL4)
0.862*
Availability

This site is always available for business

0.855*
(AVA1)
This site launches and runs right away
0.874*
(AVA2)
0.769 0.930 0.900
This site does not crash (AVA3)
0.890*
Pages at this site do not freeze after I
0.889*
enter my order information (AVA4)
Efficiency

This site makes it easy to find what I

0.831*
need (EFF1)
It makes it easy to get anywhere on the
0.864*
site (EFF2)
0.670 0.890 0.835
It enables me to complete a transaction
0.797*
quickly (EFF3)
Information at this site is well organized
0.780*
(EFF4)
Privacy / Security

It protects information about my Web-

0.890*
shopping behavior (PSC1)
It does not share my personal
0.859*
information with other sites (PSC2)
0.714 0.909 0.866
This site protects information about my
0.839*
credit card (PSC3)
I feel safe when dealing with web
0.790*
transactions (PSC4)
Customer Engagement

I prefer to book the hotel on this hotel

0.869* 0.740 0.919 0.883
website (CEB1)

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I will make my next booking from this

0.849*
hotel website (CEB2)
I will revisit this website in the future
0.860*
(CEB3)
I will recommend the others to visit this
0.862*
website (CEB4)
Note: AVE = Average Variance Explained; γ = Composite Reliability; α = Cronbach’s Alpha; *p <0.05.

Table 3: HTMT Discriminant Analysis for Measurement Model

(1) (2) (3) (4) (5)
(1) -
(2) 0.773* -
(3) 0.889* 0.850* -
(4) 0.798* 0.804* 0.862* -
(5) 0.795* 0.852* 0.860* 0.811* -
Note: (1) = Fulfillment; (2) = Availability; (3) = Efficiency; (4) = Privacy / Security; (5) =
Customer Engagement; *p <0.05.

4.2 Structural Model Analysis

According to the structural model analysis, the independent variables which are fulfillment,
availability, efficiency, and privacy/security can explain approximately 67% of the variance
explained toward the dependent variable which is customer engagement behaviors.
According to the effect size analysis in Table 3, system availability has a medium effect
size on customer engagement, whereas fulfillment, efficiency, and privacy/security have a
small effect size relationship towards customer engagement behaviors. In terms of
structural path analysis, fulfillment, system availability, efficiency, and privacy/security had
a statistically significant effect with a positive direction toward customer engagement
behaviors at the 5% level of significance because the p-value was less than 0.05. (Hair et
al., 2017). It is also supported by of BCa Bootstrapping confidence interval analysis, which
found that the 95 % confidence interval did not contain the value of zero (Hair et al., 2017).

Table 4: Structural Model for Measurement Model

p- 95% BCa
Path β t-statistic f2 Remark
value
Bootstrap
FULL → (0.005,
0.159 1.987* 0.047 0.028 Small
CEB 0.313)
AVA → (0.207,
0.356 4.651** <0.01 0.149 Medium
CEB 0.505)
EFF → (0.072,
0.223 3.051** <0.01 0.028 Small
CEB 0.361)
PSC → (0.044,
0.183 2.740** <0.01 0.039 Small
CEB 0.307)
Note: FUL = Fulfillment; AVA = Availability; EFF = Efficiency; PSC = Privacy / Security;
CEB = Customer Engagement;β = Path Coefficient; f2 = Effect Size; The bootstrap sample was
5000 samples; *p <0.05; **p <0.01.

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5.0 Conclusion & Recommendations

This study's findings explain E-service quality toward customer engagement behaviors.
Customers are more likely to be engaged if they can count on high average levels of
satisfaction, availability, efficiency, and privacy/security. It is already known the first
research objective whereby there is a significant relationship between e-service quality and
customer engagement behaviors based on the findings identified from the previous chapter
which all indirect effects were significantly greater than 95%. However, the analysis also
revealed that, due to the highest value of the path coefficient, system availability is the most
significant influence influencing customer engagement behaviors, followed by system
efficiency, system privacy and security, and finally, system fulfillment. These findings also
revealed that e-service on the hotel website is expected to have a strong search engine,
which is essential for encouraging customer engagement behaviors. In addition, the
fulfillment shows the hotel website has been providing platforms that are convenient to
access which the customer will keep engaged with the hotel itself for the next booking thus,
system availability and privacy/security are simply links with the customers where the
customers are direct to the hotel website which they can choose and select their
preferences and pay securely within online payment platform through online hotel booking.
Based on the results, it has been proved that e-service quality significantly affects customer
engagement behaviors. The results of this research have made a substantial contribution
to both the academic and industrial fields of hotel management. This study may give a
complete picture of the manager's factors influencing customer engagement behaviors.
This gives them an advantage over their competition. In addition, this study aids the
organization in sustaining and even enhancing the quality of their e-services, specifically
hotel online services. Academically speaking, testing hypotheses and subsequent
connection to the results of empirical data gathered from existing literature will contribute
to the current body of knowledge. It will give additional information about the elements
driving consumer engagement behaviors and enable the other researcher to publish future
work on the topic. This study will also serve as one of the new reading resources and
reference materials for future scholars. If the hotel's service provider can increase customer
engagement on its website, this relatively brief hiatus was the perfect chance for them to
strengthen its online presence, notably its website, by introducing extra direct online
booking tools. They may gain more customers for their firm if the e-service portal is
appropriately installed and thoroughly examined. The research limitations are significant
for researchers to gain more knowledge about research. More detailed and in-depth
research should be performed using a little improvisation of the theoretical framework. It
would be fascinating to explore the influence of e-service quality on customer engagement
behaviors and how it will affect the hotel industry in enhancing the successful
implementation of e-service itself in the modern era of innovative technology.

Acknowledgement

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Special thanks to Prof Madya Dr. Rasidah Hamid from the Faculty of Hotel and Tourism
Universiti Teknologi MARA Selangor Campus Puncak Alam Malaysia and Mr. Hanafi
Azman Ong from the Faculty of Computer and Mathematical Science, Universiti Teknologi
MARA Segamat Campus Johor Bahru Malaysia as well as to Ilma Andriasri Pratiwi from
the Faculty of Social Science Education, Universitas Pendidikan West Java Indonesia for
all their help and support. Geran Penyelidikan Khas funded this research, at Universiti
Teknologi MARA Selangor Campus Puncak Alam Bandar Puncak Alam, 42300 Puncak
Alam, Selangor Darul Ehsan, Malaysia.

Paper Contribution to Related Field of Study

Figure 1: PLS-SEM Analysis Output for Loading and Path Coefficient Values

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Figure 2: PLS-SEM Analysis Output for t-statistic values via Bootstrapping Analysis

Upon the basis of the finding of this research, it is hoped that the research results will
provide light on how successfully e-service deployment may be carried out in Malaysian
hotels. It is good news for hoteliers since e-services can help them increase income, cut
costs, and improve customer service in the hospitality business. This study's results will aid
the Malaysian Association of Hotels (MAH) and Malaysian hotels in enhancing the quality
of e-services to stimulate consumer involvement by hotels themselves. In the future, the
practical and integrated performance of e-service quality may contribute to the performance
of Malaysian hotels. Soon after the successful deployment of the e-service, the Malaysian
Association of Hotels (MAH) would be able to advertise and entice customers to stay and
remain involved with hotels. Besides, this study also is to improve the hospitality business,
where it is beneficial for management to understand the hotel's customers to adopt the e-
service in their hotel reservations. In addition, from the researchers' point of view, this study
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will help all the overall hotel operation management to understand the convenience better
using the e-service. This research is vital for both the hospitality industry and hospitality
researchers. The hotel service provider can use their information to decide whether they
want to improve the service. Completing the study will enable the researchers to enhance
their understanding so that they can acknowledge the e-service from various aspects.

Authors Declaration
This article is an extended version of the original conference paper published in the E-BPJ,
Vol. 7(21), September, 2022, 263-269.

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