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.     

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.     

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.     

How hospitality brands grow: What hospitality marketers should know about Andrew Ehrenberg’s work (invited paper for ‘luminaries’ special issue of International Journal of Hospitality Management)

Andrew Ehrenberg’s work challenges the emphasis that hospitality marketing practitioners, educators and academic researchers place on segmentation, targeting (especially of heavy users), positioning, and meaningful brand differentiation. However, few marketing practitioners and scholars in hospitality appear familiar with this work. This invited paper attempts to increase awareness and appreciation of Ehrenberg’s work as well as its relevance to and implications for hospitality marketing. Topics covered include the NBD Law, Law of Double Jeopardy, Duplication of Purchase Law, and Law of Natural Monopoly as well as the evidence of weak brand segmentation, low perceived brand uniqueness, and the generalizability of the brand belief-usage relationship.     

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.     

Determinants of customer loyalty and purchasing behavior for full-service and limited-service hotels

This study investigated factors that influence consumer purchasing decisions for two hotel segments: full-service and limited-service. Results from an online survey indicated that full-service hotel guests were more likely to be reward program members and be emotionally attached to their preferred brand. Price was the most important factor for limited-service guests’ purchase decisions, while both price and utility were important for full-service guests. Limited-service guests had lower switching costs, that is, they required less of a discount to switch to a non-preferred brand than full-service guests. The findings have implications for hotel pricing and marketing strategies.     

Impact of Guest Reward Programs on the Firms' Performance

ABSTRACT

This study investigates the commonly important variables that characterizes the reward programs of airline and hotel firms and measures the impact of reward programs on the firms' overall performance. This study focuses on examining the reward programs of two service industries, namely, airlines and hotels. The findings of this study are as follows. First, ten significant variables of the reward programs that differentiate their own program from the other and ultimately make consumers choose a particular program among various programs are derived and evaluated. T-test is employed to examine significant differences between the two ROE means for each of the ten variables. The variables that were significant were elite level qualification, affinity credit card, and award threshold were significant at the 0.01, 0.05, and 0.10 level, respectively. Second, the impacts of those influential variables on the firms' performance are measured. The three variables, purchasing miles or point, enrollment bonus, and award threshold are statistically significant at the 0.05 level. Purchase miles or points and enrollment bonus contributed significantly to the firms' return on equity (ROE), while the award threshold seemingly reduced the firms' earned ROE. Both the airline and hotel firms should be sensitive when establishing reasonable and attainable threshold levels for their customers. Customers generally turn away from high barriers and are more likely to select a program with less restrictions and conditions.     

Tourist satisfaction a cognitive-affective model

This study aims to contribute to the advancement of knowledge in the consumer psychology of tourism by carrying out an exploration of the cognitive and affective psychological processes which an individual goes through during the pre-experience and post-experience stages. Thus, a model explaining the interrelationships between psychological variables of the tourist is developed. The research was conducted with 807 individuals visiting a destination in Spain. The results show that preconceived image of the destination influences expectations and tourist loyalty. Additionally, there is support for the impact of expectations and emotions on satisfaction, which has a significant influence on behavioral intentions. Finally, several academic and managerial implications are outlined.     

Communicating Tourism Supplier Services:

This paper views three marketing communications elements as critical in building and retaining repeat visitors: external, internal and word-of-mouth messages. The paper provides a conceptual model that links these communication elements to the phenomenon of repeat travel purchase behavior. The authors emphasize the importance of repeat customers to tourism services and explore why and how each type of marketing communication has an impact on these visitors. Finally the paper suggests ways tourism supplier services can attempt to strategically manage these functions.     

The Role of Airline Travelers’ Pre-Recovery Emotions during the Service Recovery Process

This study examines (1) the relationships between airline travelers’ casual attribution (stability and controllability), pre-recovery emotions, post-recovery emotions, and overall satisfaction; and (2) analyzes the mediating effect of pre-recovery emotions on the relationship between causal attribution and post-recovery emotions. Theoretical hypotheses were derived based on a literature review, and to empirically test the hypotheses, data were collected from 210 airline travelers in Malaysia. These respondents were airline travelers who experienced some service failure and relevant service recovery within the past year. According to the results, the two dimensions of casual attribution both influenced pre-recovery emotions. Pre-recovery emotions were significantly related to positive and negative post-recovery emotions, and post-recovery emotions were significantly related to overall satisfaction. In addition, pre-recovery emotions moderated the relationship between casual attribution and post-recovery emotions. These results have important practical implications.     

Reward climate and its impact on service quality orientation and employee attitudes

This study examined the mediating role of service quality orientation (SQO) on reward climate and employee attitudes. Using a sample drawn from the hotel industry in Hong Kong, we found that reward climate was significantly associated with job satisfaction and organizational commitment. Employees that perceived a strong service reward climate tended to exhibit a more pronounced SQO and in turn higher levels of job satisfaction and organizational commitment. These findings underscore the importance of reward climate to the process of service provision. Implications for the establishment of a service reward climate are discussed as are suggestions for future research in this promising new area.     

Examining the Differential Impact of Human Crowding Versus Spatial Crowding on Visitor Satisfaction at a Festival

Human crowding at a festival can affect visitor satisfaction differently to spatial crowding. Festival visitors perceive human crowding as a situation in which the festival is full of people. Spatial crowding, on the other hand, is perceived as restricting movement. We hypothesized that human crowding affects visitor satisfaction in a positive way (by increasing positive affect and decreasing negative affect), whereas spatial crowding affects visitor satisfaction in a negative way (by decreasing positive affect and increasing negative affect). We tested these hypotheses using data collected through an on-site survey at the 2012 Seoul Lantern Festival in South Korea: 423 visitors attending the festival completed the survey. The survey results supported the hypotheses. Managerial implications of the findings are also discussed.     

Evaluating hotel animation programs at Mediterranean sun-and-sea resorts: An impact-asymmetry analysis

This study explores the determinants of tourist satisfaction and dissatisfaction with recreational services typically offered by sun-and-sea resorts, using the case of a large Croatian chain of hotels and resorts in the coastal region. The sample consisted of 994 guests drawn from the guest database. The analysis encompassed three types of animation programs: (i) sports activities; (ii) evening entertainment; and (iii) entertainment programs for children. Impact-asymmetry analysis was used to quantify potentials of particular service attributes to generate satisfaction and dissatisfaction, and to determine key-drivers according to the three-factor theory of customer satisfaction. The key-driver analysis was paired with qualitative data (guest comments on reasons for dissatisfaction) to provide valuable guidance for the hotel management in achieving higher levels of guest satisfaction within this segment of resort services. The results indicate several significant asymmetries in the formation of overall guest satisfaction, as well as differences according to the type of accommodation and selected demographic characteristics of tourists.     

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.