Customer Relational Benefits and Relationship-Marketing Outcomes: Comparing Three Transaction Types of Travel Product

Given the increasing popularity of the Internet and TV shopping, travel agencies are using these electronic channels to conduct business transactions. However, few studies investigate how customers' relational benefits affect relationship-marketing outcomes in the travel industry. This study examines the effects of the relational benefits on customer satisfaction and loyalty by focusing on three types of transaction used for travel products. The results indicate that confidence and social benefits, but not special treatment benefits, positively affect customer satisfaction. All three types of customers' relational benefits are positively related to loyalty. The influences of confidence benefits on satisfaction and loyalty are stronger for Internet transaction than interpersonal transaction and TV shopping transaction. The influences of social benefits on satisfaction and loyalty are stronger for TV shopping transaction than interpersonal transaction and Internet transaction. Therefore, the relationships among customer relational benefits, satisfaction, and loyalty are moderated by the three types of transaction.     

RELATIONSHIP INTENTION AS A MEDIATOR BETWEEN RELATIONAL BENEFITS AND CUSTOMER LOYALTY IN THE TOUR OPERATOR INDUSTRY

Relationship and customer loyalty management have been an important field of research in marketing for decades. However, the focus for many years was mainly on the benefits of relationship marketing for companies. This article contributes to a deeper understanding of the benefits of relationship marketing for customers in the travel industry. It investigates the effects between relational benefits, relationship intention and intentional loyalty using the tour operator industry as an example. Relationship intention will be introduced as a variable influencing intentional loyalty. The role of relationship intention in the customer benefit‐intentional loyalty context will be analyzed by testing different path models. The measurement model is estimated, based on a confirmatory factor analysis using LISREL with a sample of 1,702 tour operator customers. The structural model as well as the estimate path coefficients were analyzed applying a partial least square approach (PLS) using SmartPLS. This article not only contributes to the further development of models explaining intentional loyalty, but also to the development of practical insights about the influence of different measures and tools on intentional loyalty from a customer benefit perspective. It can be concluded that the intention of a customer to invest in a relationship is dependent on the perceived level of relationship benefits. Further, the results show, that the buying behavior of customers is influenced by the perceived relational benefits. With the management of customer relations, a provider can influence the behavior of the customer to exploit the earning potential efficiently. Therefore, a provider has to be successful in creating new relational benefits for his customers through measures of customer relation management.     

The effect of relational benefits on perceived value in relation to customer loyalty: An empirical study in the Australian coffee outlets industry

Retaining and cultivating customer loyalty has become increasingly important for coffee outlet marketers and operators due to the highly competitive environment. This study aims to develop and test a model investigating how relational benefits enhance perceived value to win customer loyalty. Using a self-administered questionnaire survey, 949 respondents from coffee outlets were used for this study. The findings show that relational benefits have direct effect on perceived value and customer loyalty. In addition, relational benefits also have indirect effect on loyalty via perceived value. Finally, perceived value positively influenced customer loyalty. The findings suggest that coffee outlet operators with a better understanding of their customers’ perceptions, and help them in developing competitive strategies that differentiate themselves from competitors and win customer loyalty in an aggressive market.     

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.     

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.     

Enhancing customers’ brand loyalty via branded hotel apps

Many hotels have launched their own branded mobile applications to develop relationships with customers. Yet, research examining the benefits of branded hotel apps on brand loyalty is scant. The current research investigates the role of branded hotel apps on brand loyalty through customer engagement and brand trust in the hotel industry, based on uses and gratifications theory. Results identified cognitive and social benefits of the branded hotel apps positively influenced customer engagement and brand trust. Hedonic benefits positively influenced customer engagement and they indirectly influenced brand trust through customer engagement. Both customer engagement and brand trust positively influenced brand loyalty. Moreover, mediation effects of customer engagement and brand trust were identified. Results highlight how branded hotel apps serve as a facilitator of brand loyalty, providing theoretical and managerial implications.     

OUTCOMES OF RELATIONAL BENEFITS: RESTAURANT CUSTOMERS' PERSPECTIVE

Research in business and marketing increasingly indicates the significance of relational benefits, perceived price, and perceived value in retaining customers. However, little research has considered three types of relational benefits and perceived price and value together in the customer retention process. Thus, this study was designed to propose and test a behavioral intention model by incorporating these constructs in a full‐service restaurant setting. Although the direct link between the special treatment benefit and perceived value was not significant; consistent with our hypotheses, social, special treatment, and confidence benefits appeared to boost perceived price and value, which subsequently enhanced intentions to revisit and recommend. In addition, perceived price and value mediated the relationships between relational benefits and behavioral intentions. Furthermore, the prominent role of the special treatment benefit in increasing intentions was verified. A parsimonious best‐fit model was produced through the process of testing intricate relations among study constructs. Implications of the findings and future research avenues are discussed.     

The Role of Effective Service Provider Communication Style in the Formation of Restaurant Patrons' Perceived Relational Benefits and Loyalty

The purposes of this study were to examine the optimal service provider communication style for maximizing patrons' perceived relational benefits, and to examine how perceived relational benefits influence relationship quality and loyalty within the luxury restaurant industry. A review of current communication literature was conducted, and three types of communication styles were derived. Based on the theoretical causal relationships between the proposed constructs in this study, 16 hypotheses were derived, thus creating a conceptual model. The proposed model was tested utilizing data collected from 527 luxury restaurant patrons. The results of data analysis revealed two major findings: (a) a task-orientation communication style enhances patrons' perceived confidence benefits and deepens relationship quality, thus creating patron loyalty; and (b) an interaction-orientation communication style induces rapport between service provider and patrons, thus helping to maximize patrons' perceived relational benefits. Finally, it leads to patron loyalty. Based on these findings, theoretical and managerial implications are discussed.     

Cognitive,affective, conative,and action loyalty: Testing the impact of inertia

Research increasingly emphasizes the significance of customer loyalty to a firm's success. In order to provide a clearer understanding of hotel customers’ loyalty-formation process, this study proposed and tested an extended Oliver's (1997) four-stage loyalty model by employing a multi-dimensional approach for each attitudinal loyalty stage while considering the moderating impact of inertia. The original model was slightly altered to improve its fit and predictive ability. Results from the structural model generally supported proposed paths among the variables in the model (cognitive, affective, and conative loyalty components and action loyalty) and verified the mediating roles of study variables in forming action loyalty. Further, findings from structural group comparisons using invariance tests indicated that the links from satisfaction to commitment and intention and from intention to action loyalty were stronger for the low inertia group, supporting the moderating role of inertia. Implications are discussed, and limitations of this study are briefly outlined.     

Airport shopping – an emerging non-aviation business: triggers of traveler loyalty

ABSTRACT

Despite the growth of the airport duty-free shopping market, little research has examined travelers’ shopping behavior at airports, shopping at airports being an important source of non-aviation revenue for airport operators. This study was designed to examine travelers’ loyalty formation with regard to duty-free shopping at airports by considering the role of perceived value, satisfaction, desire, and alternative attractiveness. A field survey at an international airport was conducted. A proposed theoretical framework was tested using structural equation modeling. Results indicated that perceived value, satisfaction, desire, and loyalty had significant associations, and these variables sufficiently accounted for loyalty. In addition, satisfaction played a prominent role in determining loyalty, and this variable along with desire acted as a significant mediator. Moreover, alternative attractiveness significantly moderated desire and loyalty relationship. Overall, the findings of this study considerably increased our understanding of travelers’ evaluation and loyalty generation processes with regard to duty-free shopping at airports.     

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.     

Do members want the bells and whistles? Understanding the effect of direct and partner benefits in hotel loyalty programs

ABSTRACT

As a way of increasing the perceived value of hotel loyalty programs, hoteliers are partnering with non-hotel brands to differentiate and drive member engagement. We examine the effect of such strategic alliances on the loyalty to a member program and further test a structural equation model with n = 469 active loyalty members. Our model investigates whether tier status and satisfaction function as mediators of the effects of a strategic alliance on brand loyalty. Our findings indicate that the benefits that loyalty programs and partnerships with non-hotel brands offer can positively influence brand loyalty when the member’s tier status and satisfaction mediates.     

心理契约违背对饭店顾客忠诚的影响——服务补救策略的调节效应

针对服务企业普遍面对的服务补救低效与顾客忠诚保持的挑战,文章基于心理契约与前瞻性服务补救理论,构建了顾客心理契约违背、服务补救和顾客忠诚间关系的分析框架,实证分析了心理契约违背对顾客忠诚的作用机理,并检验了服务补救策略对这一关系的调节效应。通过对262名饭店顾客的问卷调查,采用回归分析法处理数据,研究结果表明:心理契约违背两个维度与饭店顾客忠诚两个维度均呈显著负相关关系,顾客心理契约违背程度越高,顾客忠诚度越低;服务补救在心理契约违背与饭店顾客忠诚的关系中起到部分调节作用,即当企业服务出现失误而使顾客感知心理契约违背发生时,如果能采用恰当的服务补救策略,可以降低心理契约违背对顾客忠诚的负面影响。     

Drivers of Customer–Brand Relationship Quality: A Case of Mainland Chinese Hotel Loyalty Program Members

Hotel chains should understand the effectiveness of the benefits offered by their programs and the influence of customer relationship management (CRM) initiatives of individual hotels because of the high operating costs of loyalty programs and the risk of creating an affinity to the rewards they offer rather than to the brand itself. This study determines the effect of the satisfaction of hotel loyalty program members on the benefits they receive, and the CRM efforts of individual hotels on the quality of their relationship with the brand. The sample was drawn from mainland Chinese customers because of the growing importance of the Chinese tourism market. Results reveal that program benefits have no significant effect on the quality of the relationship of the member with the hotel brand. The communication of the program to its members and the customer orientation of individual hotels are the key determinants of relationship quality.     

Customer Loyalty under the Influence of Revenue Management: The Case of Taiwanese Hotel Customers

Revenue management (RM), a common practice for the hotel industry, has been found to be very effective in generating extra revenue. However, prior studies have shown that the implementation of RM may potentially be in conflict with customer loyalty, the basis for long-term profitability. With a view to alleviating the impact of RM on customer loyalty, this study investigates the relationship between customer loyalty and RM knowledge level, and examines the moderating effect of the fairness perception for pricing based on a survey and the related statistical analyses. The findings suggest that hotel operators should facilitate the RM knowledge and the fairness perception of their customers so as to result in a potential win-win situation, in which profit-seeking hotels increase their revenue through better resource utilization, and heterogeneous customers benefit from more diversified services.     

The Impact of Culture on Self-Service on Technology Adoption in the Hotel Industry

Abstract

Increasingly technology based solutions are being used to deliver customer service within the international hotel sector. Frequently, these are being driven by cost and operational efficiency concerns, rather than customer service concerns. The argument is presented in this paper that the undifferentiated use of these solutions across international hotel chains without consideration of the diversity of national cultures that may utilize these services may impact negatively on customer service and organizational performance. A number of propositions are suggested both for further academic research and as factors for consideration by hotel managers in this sector.     

Enhancing customer-based brand equity through CSR in the hospitality sector

ABSTRACT

Corporate social responsibility is considered an important element in the development of brand equity. Extant research in this context is mainly focused on the relationship between this corporate philosophy and financial performance, overlooking its potential to develop competitive advantages through brand equity dimensions. The aim of this research is to explore the impact of socially responsible aspects on hotel brand equity. To test the proposed model personal surveys of hotel customers were conducted. A structural equation model was developed to test the research hypotheses. The findings show that corporate social responsibility has positive effects on brand image, perceived quality, brand awareness, and brand loyalty.     

Influence of brand relationship on customer attitude toward integrated resort brands: a cognitive,affective, and conative perspective

ABSTRACT

Despite the significance of understanding customer behavior in the integrated resort setting, only limited research has been conducted on this topic. Thus, this study aims to identify and assess the antecedents of integrated resort brand loyalty from the perspective of Oliver’s cognitive, affective, and conative theory of attitudinal brand loyalty model. . A total of 443 respondents who had experienced integrated resorts participated and completed a survey questionnaire. A positive relationship was observed between two-way communication and brand attitude, emotional exchange and brand attitude, brand partner quality and brand attitude, and brand attitude and behavioral intention toward integrated resort brand. Results revealed the association between cognitive, affective, and conative dimensions and integrated resort brand value. This notion suggests that integrated resort brands carry a high awareness of relationship, and the brand will invoke an emotional value in customers. Therefore, integrated resorts should consider customer–brand relational aspects to achieve long-term success for the integrated resort brand.     

Switching intention model development: Role of service performances,customer satisfaction,and switching barriers in the hotel industry

The intricate relationships among core service and service encounter performances, customer satisfaction, and switching barriers in the formation of satisfaction and switching intention were examined in this study. A field survey was conducted at upper-midscale hotels. The results of the structural analysis revealed that both core service and service encounter performances significantly affected customer satisfaction, and satisfaction completely mediated the effects of service performances on switching intention. In addition, findings from the tests for metric invariances indicated that components of switching barriers (switching costs, relational investment, and lack of alternatives’ attractiveness) moderated the relationships between satisfaction and switching intention. In particular, the role of satisfaction derived from service performances in decreasing hotel guests’ intention to switch is greater when they perceive high switching costs, relational investment, and lack of alternatives’ attractiveness. Based on study findings, theoretical and practical implications are identified and discussed.     

Unraveling the dynamic and contingency mechanism between service experience and customer engagement with luxury hotel brands

This study unravels the dynamic and contingency mechanism between service experience and customer engagement with luxury hotel brands by investigating a multi-step model linking these two variables, in which emotional attachment and relational quality constructs (i.e., brand satisfaction, brand trust, and brand commitment) act as a bridge, while customer involvement acts as a moderator. Based on a self-administered survey dataset of 249 international tourists who are customers of luxury hotel brands, partial least square structural equation modeling (PLS-SEM) is used to test the hypotheses. The results indicate that all proposed hypotheses are supported. As such, this study discovers and clarifies the nature and dynamic mechanism underpinning the co-creation and reciprocation process of customer engagement with luxury hotels. In particular, the positive service experience is found to contribute to customer engagement via emotional attachment and relational marketing. Furthermore, the moderating role of customer involvement in the luxury hotel setting is confirmed.