Role of service encounter and physical environment performances,novelty, satisfaction,and affective commitment in generating cruise passenger loyalty

This research developed a theoretical model explaining the relationship between service encounter performance, physical environment performance, novelty, overall satisfaction, and loyalty in the cruise context. The results of structural equation modeling (SEM) analysis showed that service encounter performance and physical environment performance were significant predictors of novelty, which in turn affected overall satisfaction and loyalty. The mediation test indicated that novelty significantly mediated the effect of service encounter performance and physical environment performance on satisfaction; and overall satisfaction significantly mediated the relationship between novelty and loyalty. The relationship between physical environment performance and novelty and the relationship between novelty and overall satisfaction were significant in the high affective commitment group. In addition, the relationship between novelty and loyalty was only significant in the low affective commitment group.     

Do reward programs truly build loyalty for lodging industry?

Hotel brands have sought numerous ways to build the relationship with their customers. Inspired by the airlines’ success, most major hotel chains have developed loyalty programs that reward customers for repeat business. However, the effectiveness of reward programs has been questioned. To explore reward programs’ potential to alter normal patterns to behavior, this research investigates how the timing of rewards affects customer loyalty for hotels and whether the effectiveness of these reward structures is moderated by customer satisfaction. This research also examines whether customer's value perception of loyalty program truly affect brand loyalty or program loyalty. In order to test the research framework, a 2 × 2 full-factorial, randomized, between-subject experimental design was conducted. In total, 209 respondents participated in the study. The results indicate that immediate rewards are more effective in building a program value than delayed rewards. Moreover, the value of loyalty program affects customer loyalty only through program loyalty to the extent that the program provides value to the customer. Finally, satisfaction plays an important moderating role on reward timing. Delayed rewards work better than immediate rewards only if customers are satisfied with hotel experience. In contrast, the immediate rewards in the dissatisfied experience become effective in their capacity to invoke customer loyalty.     

Influencing factors on restaurant customers’ revisit intention: The roles of emotions and switching barriers

This study was designed to examine the relationships among consumption emotions, customer satisfaction, switching barriers, and revisit intention. Four positive and negative categories of switching barriers (preference, switching costs, relational investment, and lack of alternatives) were identified through a qualitative approach. Using structural equation analysis, the proposed relationships were tested in a full-service restaurant setting. The results showed that multiple components of consumption emotions significantly affected customer satisfaction, and satisfaction mediated the effect of emotion factors on revisit intention. The findings from the tests for metric invariances also indicated that the strength of the relationship between satisfaction and revisit intention was different across high- and low-switching barrier groups. In particular, the satisfaction-revisit intention relationship was stronger in each low-switching barrier group than in each high-switching barrier group.     

Why do satisfied customers switch? Focus on the restaurant patron variety-seeking orientation and purchase decision involvement

Company efforts to make customers switch from competitive brands to their own or induce them to repurchase their own brands are very important in their marketing activities and in this regard studies of customer variety-seeking orientation and level of involvement in decision making play a crucial role in explaining customers’ product selection activities. The purpose of this study intends to examine interrelationships among customer satisfaction, loyalty, and switching intent in family restaurants and verify the moderating effect of customer variety-seeking orientation and purchase decision involvement. A total of 305 patrons in Korea participated. The results showed a positive relationship between customer satisfaction and loyalty. Participants expressing a high level of satisfaction were more likely to switch restaurants. Whether customers feel loyalty determines their switching intent. There were moderating effects related to customer variety-seeking orientation in the causal relationships between customer loyalty and switching intent. Limitations and future research directions are also discussed.     

Value Creation

Abstract

The most essential theory of loyalty marketing is that a small increase in loyal customers can bring a significant increase in profitability to a business. Recently, businesses in various industries have turned single-brand loyalty programs into corporate-wide loyalty programs across different brands. The purpose of the study was to examine the effect of strategic alliance on customer loyalty in the hotel industry. Results of the study indicate that there is a positive relationship between strategic alliance and customer loyalty, and that value-creation from strategic alliance is only one element in the decision-making process of loyal customers. Managerial implications, limitations, and recommendations for future research were discussed.     

Consumers’ prestige-seeking behavior in premium food markets: Application of the theory of the leisure class

Premium food markets have emerged as a new form of foodservice establishment. They feature a unique eating and shopping experience that offers a wide variety of high-quality food in a sophisticated environment with distinctive consumer services. Based on the theory of the leisure class, this study explored how consumers’ prestige values influence their behavioral intentions, particularly their customer citizenship behavioral intention and revisit intentions, toward premium food markets. The study sample included customers who have shopped at premium food markets. Using a self-administered survey, 247 valid responses were obtained for analysis. The results showed the positive effects of prestige values on affective commitment and the positive influences of affective commitment on customer citizenship behavioral intention and revisit intention. This study significantly extends prestige-consumption knowledge in the foodservice and hospitality industries.     

Influence of sustainable hospitality supply chain management on customers’ attitudes and behaviors

This study aims to identify the impact of the environmental, social and economic dimensions of sustainable hospitality supply chain management actions on customers’ attitudes and behaviors including satisfaction, loyalty and willingness to pay a premium for sustainable hospitality goods and services utilizing data collected from U.S. consumers who frequently stay at hotels. Findings suggest that while both environmental and economic dimensions’ actions of sustainable hospitality supply chain management have positive influences on customer satisfaction, loyalty and willingness to pay a premium for sustainable hospitality goods and services, the social dimension actions are found to have a positive influence on customer satisfaction and a negative influence on customer willingness to pay a premium. Results also indicate that customer satisfaction fully mediates the relationship between social dimension actions and customer loyalty. In addition, customer satisfaction positively influences customer loyalty, which ultimately increases customer willingness to pay a premium. The implications of the research findings are provided.     

Gender,loyalty card membership,age, and critical incident recovery: Do they moderate experience-loyalty relationship?

The study examines the critical role of customer experience in determining hotel brand loyalty and the moderating role of gender, loyalty card membership, age, and critical incident recovery in this relationship. Based on a sample of 408 hotel guests and employing structural equation modeling approach, dimensions that comprise ‘customer experience with hotel brands’—hotel location, hotel staff competence, hotel stay, and ambience, hotel website and social media, and guest-to-guest experience—are found to have relative effects on hotel brand loyalty. The results contribute to hospitality realm by suggesting the moderating effect of gender, loyalty card membership, age, and critical incident recovery on customer experience-loyalty relationship. Implications for managerial practice and theory are discussed together with limitations and further research directions.     

Understanding Active Loyalty Behavior in Hotel Reward Programs Through Customers’ Switching Costs and Perceived Program Value

Whether loyalty programs have become part of the lexicon of buzzwords or not, the hotel industry continues to adopt loyalty/rewards programs as a major channel to nurture customers’ active loyalty as well as to reap return business. This study examins the structural relationships among perceived program value, switching costs, and active loyalty. The proposed model is supported by an online survey dataset collected from United States (US) tourists. The findings show that perceived program value is less effective in driving active loyalty compared with switching costs. This implies a need for strategic thinking on the part of hoteliers and the industry. Rather than aggressively spending money or copying schemes used by competitors to gear up program value, the value of a defensive tactic of increasing switching costs should be considered.     

Destination attachment: Effects on customer satisfaction and cognitive,affective and conative loyalty

Tourists may develop attachment to a destination because of its ability in fulfilling specific goals or activity needs and/or because of its symbolic meaning and thus, attachment could be an important measure of tourist satisfaction and loyalty. Despite its significance, only limited research has been conducted to determine the likely influences of emotional associations or meanings tourists attach to the places they visit on their satisfaction and future behavior. This study therefore explores the role of attachment in predicting satisfactory holiday experiences and destination loyalty. Results of the structural equation modeling show that positive emotional and cognitive bonds with a place could indeed affect an individual's critical assessment of a destination and his/her loyalty to the place. Implications of the study are discussed.