INFLUENCE OF EXTERNAL PHYSICAL SERVICESCAPE ON CUSTOMER LOYALTY: A CASE OF SELECTED HOTELS IN MWANZA CITY, TANZANIA.
Purpose of the Study: This study aimed to investigate how external physical servicescape elements specifically landscaping, signage, and outdoor entertainment facilities affect customer loyalty in selected hotels in Mwanza City, Tanzania. The objective was to understand how these visible exterior cues shape customers’ perceptions, satisfaction, and intention to revisit or recommend the hotels.
Methodology: A cross-sectional research design was adopted. Data were collected through structured questionnaires administered to customers across selected mid-tier hotels in Mwanza City. Using convenience sampling, 336 responses were analyzed. Multiple regression analysis was used to determine the predictive influence of each external servicescape dimension on customer loyalty.
Findings: The results showed that all three external physical servicescape elements significantly influence customer loyalty. Outdoor entertainment had the strongest positive effect (B = 0.393, p = .000), followed by landscaping (B = 0.297, p = .000) and signage (B = 0.202, p = .000). The results show that improvements in these external features meaningfully increase customer satisfaction and loyalty.
Originality: This study adds empirical evidence from the Tanzanian hospitality sector, where research on external servicescape remains limited. By applying the S-O-R Theory, the study demonstrates how external hotel attributes trigger customer evaluations that ultimately shape loyalty behavior.
Practical Implications: Hotel managers should prioritize visible external improvements such as enhancing outdoor entertainment spaces, upgrading landscaping, and ensuring clear and professional signage to strengthen customer loyalty. Regular maintenance and aesthetic upgrades can significantly boost customer perceptions and repeat patronage.
Social Implications: Improved hotel exteriors contribute to a more attractive city environment, enhance visitor experiences, and support local tourism development. A visually appealing surroundings may also stimulate positive word-of-mouth and community pride.
Keywords: External servicescape, customer loyalty, landscaping, signage, outdoor entertainment, hotels, Mwanza City, S-O-R theory.
