Organizational culture on customer delight in the hospitality industry

Compared with customer satisfaction, customer delight is considered a more effective indicator of customer relationship management in the hospitality industry. As researches have suggested that organizational culture plays a vital role in providing customer delight service in the hospitality industry, this study initiated to investigate customer delight from the perspective of organizational culture. The investigation was based on multilayer cultural theories, and the domains of customer delight culture were identified in this study by applying a qualitative approach and content analysis. Finally, a framework of the customer delight culture was then developed to clearly understand the insights of organizational culture on customer delight.     

The windfall gain effect: Using a surprise discount to stimulate add-on purchases

How can the business maximize revenue while providing discounts? This research suggests that hospitality operators may stimulate add-on purchases with the adoption of surprise discounts. Two experiments investigated factors that influence hospitality consumers’ ancillary spending. Study 1 tested the discount and product type effects on additional spending intentions for a cruise booking. Study 2 identified how the depth of surprise discount and add-on product type influence consumers' add-on purchase decisions for an online hotel booking. The findings indicate that a surprise discount and hedonic items induce consumers' unplanned purchases. A hedonic add-on item is preferred over a utilitarian item when a low discount is offered. Impulse buying mediates the effect of surprise discount and product type on unplanned purchase intentions. This research extends the traditional discount role, by demonstrating that a discount promotion can induce consumers' additional purchases. The findings provide guidance for effective pricing strategies and add-on marketing mix.     

Territoriality revisited: Other customer's perspective

In this study, we investigate the impact of other customers’ territorial behaviors on observing customers with a focus on a specific type of territorial behavior: refusing to share a table with another customer. Drawing from the other-customer-perception (OCP) framework, social projection theory and deontic justice theory, we examine how the observing customer's territorial tendency, perceived similarity to the rejected intruder and the level of crowding influence customer reactions to territorial behaviors. The results of this study suggest that these three factors jointly influence the observing customer's negative emotions. Moreover, the level of crowding and the observing customer's territorial tendency together influenced fairness perceptions. Finally, negative emotions and fairness perceptions had a significant impact on the observing customer's satisfaction. Implications for hospitality scholars and practitioners are discussed.     

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.     

The social influence of other consumers on consumers’ reward donations

Loyalty reward programs and corporate social responsibility initiatives are ubiquitous in today’s corporate world, yet little is known how they can be synthesized to benefit companies and those in need. In two studies, we examine how the social influence of other consumers (the presence of other consumers and loyalty status tier) interact with reward type (effort-based vs. surprise) to influence consumers’ propensity to donate their loyalty rewards to charity. Furthermore, we uncover the underlying psychological mechanisms (i.e. instrumentality and self-enhancement) explaining the effects. Our findings indicate that hospitality operators should design loyalty reward programs that involve the presence of other consumers to induce reward donations. However, if the goal is to solicit donations from solo consumers, surprise rewards (vs. effort-based rewards) are more effective. In addition, we show that both types of rewards are effective among high-tier consumers, whereas only surprise rewards lead to high donation intent among low status consumers.     

Antecedents of loyalty toward rural hospitality enterprises: The moderating effect of the customer's previous experience

This paper aims to identify the consumer behavior variables and the moderating effect of customers’ previous experience that generate greater customer loyalty toward rural hospitality enterprises. A model is proposed that encompasses the moderating effect of customer experience on the relationships between: the functional and affective perceived value of the firm's offer; the firm's reputation; and customer satisfaction – and the effect of these variables on loyalty-driven behaviors (recommendation and repurchase intentions). The work finds that functional and affective perceived value influence reputation and satisfaction, and that this effect is moderated by the customer's experience. When they have prior experience of the firm, affective perceived value takes precedence over functional perceived value. However, functional perceived value constitutes the most valued element when customers are using the services of the firm for the first time. Reputation and satisfaction are also found to contribute to the generation of better recommendation and repurchase intentions.     

Do employees’ satisfied customers respond with an satisfactory relationship? The effects of employees’ satisfaction on customers’ satisfaction and loyalty in a family restaurant

The purpose of this study is to understand the interrelationships among employees’ satisfaction and customer's satisfaction and loyalty in a family restaurant. The study was administered to 69 employees and 258 customers. The results showed a positive relationship between employees’ satisfaction and customer satisfaction. However, employees’ satisfaction did not have a significant, direct impact on customer loyalty, but showed an indirect influence via customer satisfaction. In addition, customer satisfaction was positively associated with customer loyalty. Limitations and future research directions are also discussed.     

Predictors of Service Effort

ABSTRACT

Improving service quality will continue to be a vital goal for hospitality and tourism organizations in the new millennium. As service worker performance directly impacts customer's evaluation of quality, further investigation of methods of improving performance are necessary. Service effort is a construct that has received little attention in the literature, but may be a significant factor in linking employee attitudes and customer perceptions of service quality. This exploratory study tested three popular managerial constructs to determine the extent to which they predict service effort. Using data from 331 service workers from two cruise line operations organizations, motivation, organizational commitment and job satisfaction were regressed against service effort. Results indicate that organizational commitment was the greatest predictor of service effort, followed by motivation. One dimension of job satisfaction (satisfaction with company), failed to yield a significant relationship with service effort, while satisfaction with supervisor yielded a slightly negative coefficient. Implications for hospitality and tourism managers and organizations are discussed.     

Corporate reputation,satisfaction, delight,and loyalty towards rural lodging units in Portugal

This paper enriches the model of delight and satisfaction that Oliver et al. (1997) propose and Finn (2005) modifies, with a suggested causal relationship between disconfirmation and arousal and the introduction of two new variables: the lodging unit's corporate reputation and perceived quality. The modified model is applied to rural tourism accommodations in Portugal and validated using PLS (Partial Least Squares). The results suggest that the lodging unit's reputation is a more significant determinant of loyalty than satisfaction or even delight. This study further supports the conceptualization of customer delight and customer satisfaction as distinct constructs. Results may help managers of rural tourism accommodations to develop and implement more successful relationship marketing strategies.     

The impact of information technology on hotel operations,service management and transaction costs: A conceptual framework for full-service hotel firms

This paper develops a conceptual framework that describes the impact of information technology (IT) on service management and transaction costs in full service hotel firms. It details how IT would help such firms to lower operations-related transaction costs. Further, the underpinnings of how IT would impact service management in full service hotel firms is discussed more specifically from a customer satisfaction point of view while focusing on two aspects, i.e. managing customer delight and the customer's role as a co-producer. Propositions are developed and a discussion on the impact of IT on firm profitability from a transaction cost perspective ensues while concluding with managerial implications.     

Business Traveler Satisfaction with Hotel Service Encounters

Abstract

This study examines customer satisfaction with a series of hotel services. Five service encounters were examined in a sample of business travelers (n = 140) who had stayed in Hong Kong hotels. Overall satisfaction and repurchase intention were differentially impacted by the various service encounters. Business center encounters had the greatest effect on business traveler satisfaction, followed by check-out and check-in encounters. Interestingly, room and restaurant encounters had the least impact on satisfaction. The delivery of good core services alone cannot guarantee customer satisfaction. Hotels must also pay attention to peripheral service delivery, because these encounters help to shape the customer's overall level of satisfaction and repurchase intention.     

The effect of physical environment on passenger delight and satisfaction: Moderating effect of national identity

This study aims to examine the influence of an international airport's physical environment on passengers' delight and satisfaction. This study also aims to assess the moderating role of national identity on the relationship between physical environment and passengers' delight and satisfaction. A convenient sampling technique was used to select the sample. A total of 271 questionnaires distributed at Kuala Lumpur International Airport, Malaysia were used for data analysis. The result from the structural analysis suggests that physical environment in an international airport influences passengers' delight and satisfaction. Moreover, national identity portrayed in airport moderates the relationships between physical environment, passengers' delight and satisfaction. Overall, findings of this study extends the understanding of physical environment, passengers' delight and satisfaction and national identity in the context of an international airport and offer implications for international airport authorities. Discussions and implications for airport practitioners, limitations, and suggestions for future research are also provided.     

Effects of customer incivility on frontline employees and the moderating role of supervisor leadership style

Customer incivility toward frontline employees (FLEs) is a widespread phenomenon within tourism and hospitality industries, severely depleting the psychological resources of FLEs and delivered customer service. Drawing on the job demands-resources and conservation of resources frameworks, the current research compares the effects of the two most common forms of customer incivility on FLEs' psychological responses and behavioral intentions (study 1). Moreover, this work explores the degree to which supervisor leadership style can mitigate the depleting effects of these two forms of customer incivility on FLEs (study 2). Findings demonstrate that FLEs' responses to customer incivility episodes remain contingent upon supervisor's leadership style and acknowledge that an empowering (vs. laissez-faire) leadership style can better mitigate the depleting effects of both customer incivility forms on FLEs' role stress, rumination, retaliation and withdrawal intentions. The implications of these findings for tourism and hospitality theory and practicing managers are discussed.     

Customer responses to intercultural communication accommodation strategies in hospitality service encounters

With the increasing pace of globalization, hospitality firms are serving more and more international customers from distinctively different cultural backgrounds. In order to enhance intercultural consumption experiences, some hospitality firms have implemented two types of communication accommodation strategies: (a) match the cultural background of the service provider and the customer and/or (b) use the customer's native language to facilitate communications. This study aims to examine how such intercultural communication accommodations influence customers’ service encounter experiences. A 4 (communication accommodation: language congruence, ethnic congruence, language and ethnic congruence, and no accommodation) × 2 (focus of communication accommodation: intercultural vs. interpersonal) factorial between-subject experimental design was employed using videotaped hotel check-in scenarios as experimental stimuli. The findings suggest that consumers respond to communication accommodation strategies with increased felt pleasure, arousal, and dominance. Furthermore, accommodation strategies contributed to the perceived symbolic value of the service encounter, especially when employees expressed the intercultural focus of communication accommodation practices. The study results provide insights for hospitality practitioners in managing service encounters in today's highly global world.     

Perceptions on quality customer service in the hospitality industry in Papua New Guinea: an evaluation

The purpose of this study is to identify any quality customer service gaps in the hospitality industry in Papua New Guinea (PNG) and to test the significant values of each of the necessary variables that make up the component of quality customer service in the hospitality sector. A survey has been done among a group of 197 visitors in hospitality firms. Results revealed that the hospitality industry in PNG had a major service gap in the area of “Personalized Service and Empathy”. This gap includes areas such as serving customers' best interests, never too busy to respond to questions, and understanding of specific needs. The study also identified that the major predictors for overall customer satisfaction were “Tangibles” and “Financial Competence and Reliability”, which had a significant negative effect on customers' satisfaction.     

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.     

Analysis of E-commerce and information technology applications in hotels: Business travelers' perceptions

Numerous research studies have been conducted that are related to e-commerce and information technology (IT) applications in the hospitality industry with regard to business operation, profit, output, and management perspective. The focus of this study is to examine current e-commerce and IT applications in the hospitality industry and to identify the business travelers' perceptions in order to improve customer service. One of the problems in the hospitality industry is that customers want advanced e-commerce and IT applications, but restaurants and hotels are not necessarily implementing them. This study discusses the typical problems and obstacles of implementing e-commerce and IT applications in hospitality, using the lodging e-commerce and IT applications to satisfy customers, and developing the lodging e-commerce and IT applications as a corporate competitive advantage. Moreover, this study investigated a variety of e-commerce and IT applications related to customer service, satisfaction, and retention as well as e-commerce and IT applications as a distribution channel for receiving travelers' information and accommodation booking. This study provides valuable implications for hospitality practitioners about customer perceptions relative to e-commerce and IT applications.     

A holistic view of the service experience at coffee franchises: A cross-cultural study

Service quality alone is no longer a sustainable advantage in today's competitive hospitality industry, and marketers are paying more attention to strategically managing the customer's experience. The purpose of this study is to examine the customer service experience from a holistic standpoint, and further consider how different components of the customer service experience influence perceived value, attitudes, and loyalty at coffee franchises. Further, this study conducts a comparative analysis to find the similarities and differences that exist cross-culturally between Americans and Koreans. This study develops a self-administered questionnaire for data collection: we adopt a convenience sampling method and collected data at two Starbucks franchises and two Coffee Bean franchises in both Seoul, South Korea, and Miami, US. Further, the study implements structural equational modeling to analyze the data. Overall, the results support the study hypotheses, and indicate that nationality has a moderating effect on the relation between the latent variables.     

Analysis of Hoteliers' E-Commerce and Information Technology Applications

ABSTRACT

Numerous research studies are being conducted that are related to e-commerce and information technology (IT) applications in the hospitality industry with regard to operational, profitability, productivity, and management perspective. The focus of this study is to examine current e-commerce and IT applications in the hospitality industry and to identify the business travelers' needs relative to advanced e-commerce and IT applications to improve customer service. Hoffman and Chung (1999) stated that what customers want most is not what restaurants and hotels are necessarily implementing. This study discusses the typical problems and obstacles of implementing e-commerce and IT applications in hospitality, using the lodging e-commerce and IT applications to satisfy customers, and developing the lodging e-commerce and IT applications as a corporate competitive advantage. Moreover, this study investigated a variety of e-commerce and IT applications related to customer service, satisfaction, and retention as well as e-commerce and IT applications as a distribution channel for receiving travelers' information and accommodation booking. This study provides valuable implications for the hospitality practitioners about customer needs relative to e-commerce and IT applications.     

When will customers care about service failures that happened to strangers? The role of personal similarity and regulatory focus and its implication on service evaluation

This paper examines an interesting research question: how does a service failure that happen to a stranger customer influence an observing customer's service evaluation? Drawing on the defensive attribution theory and regulatory focus theory, we argue that an observing customer will attribute more (vs. less) blame to the company if the customer involved in the undesirable incident is personally similar (vs. not similar) to him/her. These attributions, in turn, will influence the observing customers to form a negative evaluation on service quality of the company. More importantly, a prevention-focused tendency will intensify the negative impact of personal similarity on service evaluation. Results from two experiments confirmed the hypotheses.