The effect of perceived error stability,brand perception,and relationship norms on consumer reaction to data breaches

The issue of data breaches has received increasing attention in the hospitality industry. Companies’ efforts to fix such errors affect consumers’ evaluations and behavioral intentions toward those companies. This study investigates the impact of perceived error stability on hotel guests’ intentions to spread positive word-of-mouth (WOM) about a hotel. The findings reveal that when a data breach occurs, consumers are likely to spread positive WOM about a company that is typically considered competent if the consumers perceive the error stability to be low rather than high. Consumers have similar reactions to companies with which they have communal relationships. This research suggests that hotels should strategically allocate their resources on the basis of brand perception in the minds of their target consumers as well as their relationships with their target markets.     

Competing resort hotels Word-of-mouth communication and guest retention

Word-of-mouth (WOM) communications were the most often reported method of first learning about hotel choices in an ocean resort area. WOM communications were associated positively with customer retention by resort hotels, ie resort hotels having the most WOM communications had the highest reported most recent visits from customers known to have stayed at the respective hotels. Specific hotel services perceived to have been better than expected were found to be associated with WOM communication. The study Included a five-page questionnaire sent to samples of customers of six hotels. Comparisons of WOM communications by customers across hotels are provided.     

Antecedents of customer WOM in glamping: The critical role of original ecology

Glamping has grown increasingly popular as a new type of outdoor hotel that combines nature with luxury. Glamping operations managers must fully understand how certain attributes of their business affect their customers’ word-of-mouth (WOM) in order to sustain growth and attract new customers. There has been little previous research on the influence of nature-related attributes on customers’ emotions and WOM. To address this gap, we conducted interviews in two glampsites based on the Stimulus-Organism-Response (SOR) framework. We also analyzed online reviews for 20 glampsites. We conducted qualitative analysis on the data using grounded theory techniques. We found that original ecology (including authenticity, scenery, and natural lifestyle) and accommodation environment (including room and public space) can affect customers’ emotional value (including tension release, enjoyment, and social bonding), which can in turn affect their WOM. The results presented here may provide useful implications for both researchers and glamping business managers.     

The effect of atmosphere on customer engagement in upscale hotels: An application of S-O-R paradigm

Research suggests that atmosphere plays an important role in creating emotional connections between a hotel customer and the hotel and that these connections lead to improved customer satisfaction and customer engagement. The purpose of this research is to identify some of the atmosphere elements within a hotel that might enable customers to better engage with the hotel. A structural equation model (SEM) was employed to test the relationships. Social and room design were found to be significant antecedents to customer satisfaction. The research also found that while satisfied customers were more likely to promote the hotel to others through WOM behavior, they had fewer suggestions for improvement. Theoretical and practical implications are discussed as well.     

Does offering an organic food menu help restaurants excel in competition? An examination of diners’ decision-making

This study aims to examine whether the presence of an organic food menu can positively influence diners’ decision-making. A 3 (restaurant segment: quick service vs. casual dining vs. fine dining) by 2 (price discrepancy between competing restaurants: small vs. large) scenario-based experiment was conducted with 405 U.S. consumers. MANCOVA results indicate that using organic ingredients offers a greater advantage for the quick-service segment regarding perceived food quality, attitudes towards the restaurant, and willingness to select, compared to casual and fine dining segments. The magnitude of a premium price of organic ingredients negatively influences such advantage in the process of consumers’ decision-making. When a large (vs. small) premium price is charged for using organic ingredients, customers’ preferences for the restaurant (over its rival) significantly drops to such an extent that customers are more willing to choose the competitor (i.e., rival restaurant with a conventional menu). Discussions and implications are further elaborated.     

Satisfaction and positive emotions: A comparison of the influence of hotel guests’ beliefs and attitudes on their satisfaction and emotions

This research provides a comparative study of two comprehensive servicescape models to explore the underlying influence of various hotel elements on guests’ satisfaction with, and emotional responses to, their hotel stays. Based on the theory of reasoned action (TRA) and the theory of planned behavior (TPB), this research sought to identify the differences in guests’ beliefs and attitudes about the elements of hotels’ public areas, rooms, ambiance, social, and green practices in determining their satisfaction and emotions. Two structural models were developed illustrating the theorized interrelationships between identified constructs. Data collected through an online survey from 310 guests stayed in upscale hotels with four-star ratings were used for the analysis. Results from two structural models revealed that the model with attitudes is a better predictor of guest satisfaction and emotions than the model with beliefs. Further, emotionally attached guests engage more in WOM than did satisfied guests. Hotel managers need to offer experiences that consist of elements that matter to customers since customers’ attitude towards various service elements determine their satisfaction and emotional attachment with hotels. Additionally, in order to get brand promoters through WOM recommendations, hotels need to focus on emotionally attached customers than satisfied customers.     

How does social distance impact customers’ complaint intentions? A cross-cultural examination

This study examines the impact of social distance between focal customers and other customers (in-group versus out-group) on complaint intentions in a cross-cultural (i.e., collectivist Chinese versus individualist American) context. Results from a between-subjects quasi-experiment suggest that social distance moderates complaint intentions across the two cultural groups. When dining out with their families (i.e., in the presence of in-group members), American customers (versus Chinese) are more likely to voice complaints about service failures. However, in the presence of strangers (i.e., out-group members), complaint intentions are uniformly high for both American and Chinese participants. Moreover, concern for face (CFF) is the underlying mechanism explaining customers’ reactions to service failures. Specifically, when service failures are observed by strangers, CFF mediates the impact of culture on complaint intentions while the role of culture is more salient in the presence of family members.     

Designing lifestyle hotels

Art creates irreplaceable added value and serves as a source for satisfying the spiritual needs of hotel customers. To provide customers with memorable services, hotels not only need to continue improving their services (exploit), but also have to design artistic new services (explore). Thus, customer willingness to return to the hotel could be increased, enhancing customer loyalty. However, few hotels simultaneously implement these two types of trade-off activities (i.e., exploitation and exploration). According to the ambidexterity perspective, this study applied a case study approach to investigate the process through which hotel operators design lifestyle hotels. Moreover, this study involved constructing an operational framework that adopted art as the basis for differentiation. The research results revealed that in introducing art concepts into a hotel service system, hotels operators must attach a high level of importance to several key activities, including hiring a full-time executive artistic manager in the top management team to engage in innovation, integrating local culture and the natural environment into the design of an artistic servicescape, catering to customers’ needs, and adopting high-performance human resource practices. These activities enable hotels to enhance their service capability in simultaneously implementing the two mutual trade-off activities, specifically designing new artistic services (explorative innovation) and continually improving their services (exploitative innovation).     

What recovery options to offer for loyalty reward program members: Dollars vs. Miles?

Research shows that offering monetary compensation is effective in restoring customers’ equity perceptions following a service failure. However, little is known about loyalty reward program members’ responses to various types of recovery options. This study fills this important void by investigating two types of compensation: a discount coupon (in dollars) and bonus reward points (in miles) in the airline context. This study further investigates the boundary effect of controllability of a service failure. Our findings show that, when the flight delay is perceived as highly controllable by the airline company (i.e., scheduling error by flight crews, repatronage intention was higher in the 50-dollar discount vs. 2500 bonus miles condition. Conversely, repatronage intention did not differ between the two compensation options when the flight delay was perceived as uncontrollable i.e., inclement weather. Our findings help hospitality and tourism firms leverage service recovery initiatives for loyalty reward program members.     

The effects of cognitive,affective, and sensory attributes on hotel choice

Over the past decade, experiential marketing has been the focus of many hospitality and tourism studies. Yet the existing literature does not provide experimental evidence of the incremental effects of affective and sensory attributes on the choice of hospitality service and destinations. This study attempts to provide some such evidence by using discrete choice modeling to examine the differential effects of cognitive, affective, sensory attributes on hotel choice. Bayesian D-optimal design based on JMP 8.0 was used to create a discrete choice experiment. Consumer hotel choice was predicted using random parameter logit (RPL) models. These results demonstrate that when customers choose a hotel, they consider not only cognitive attributes (e.g., price, service and food quality, and national brand), but also affective (e.g., comfortable feeling and entertaining) and sensory (e.g., room quality, overall atmosphere) attributes. The results also demonstrate the incremental value of adding affective and sensory attributes to a choice model when compared to a model using only traditional cognitive attributes. The data suggest that hotel managers can effectively differentiate their properties by incorporating affective and sensory attributes in their promotions. Moreover, the findings provide hotel managers with important insights into new product development and marketing communications strategy.     

In darkness we seek light: The impact of focal and general lighting designs on customers’ approach intentions toward restaurants

For many hospitality businesses, environmental lighting design can be a powerful tool to be leveraged to stage the servicescape when creating marketing collateral to attract customers. Addressing this underexplored topic, the current research examines how and why focal and general lighting designs, as presented in the restaurant’s ambient images, influence consumers’ approach intentions: namely, the perceptions of attractiveness of the restaurant and their visit intention. Our findings demonstrate that images that present focal lighting (e.g., table lighting) against a generally dimmed dining ambience can effectively boost the restaurant’s perceived attractiveness and visit intention among diners who are of high (vs. low) relational intimacy. Moderated-moderated mediation analysis (Hayes, 2018) further reveals that it is ambient intimacy that explains such effects. Theoretical and managerial implications of this research are presented before discussing limitations and future research opportunities.     

Can Response Management Benefit Hotels? Evidence from Hong Kong Hotels

With the growing influence of online reviews, more hotels are adopting online response management, but whether this works and benefits a hotel has rarely been studied. In this research, we study the impact of response management on hotel online ratings using data retrieved from TripAdvisor with a focus on Hong Kong hotels. We find that (1) high class hotels are more likely to adopt response management; (2) there is no significant difference among different hotel classes in terms of response rate; and (3) targeted response management has a significant positive effect on hotel ratings. In addition, Asian customers tend to give lower ratings than Western customers. We outline specific implications for hotel managers and their online management and offer suggestions for future research based on the empirical findings.     

Responding to negative online reviews: The effects of hotel responses on customer inferences of trust and concern

Our research examines the perceptions and evaluations of prospective customers toward an online negative review and any accompanying hotel response. The study explores two main issues: whether the presence (versus absence) of an organizational response to negative customer reviews affects the inferences potential consumers draw about the target business, and which aspects of responses affect their impressions. We test the effects of four variables associated with a response: source of response, voice of responder, speed of response, and action frame on two outcomes variables (i.e., customer concern and trust inferences). The provision of an online response (versus no response) enhanced inferences that potential consumers draw regarding the business's trustworthiness and the extent to which it cares about its customers. Using a human voice and a timely response yielded favorable customer inferences. Inferences did not vary with response source or action frame. Implications are drawn for effective management of negative online reviews.     

Disentangling green service innovative behavior among hospitality employees: The role of customer green involvement

Regardless of the role of customers in co-creating value with organizations, how customer involvement drives employees, particularly in the hospitality industry, to engage in green service innovative endeavors has been scarcely examined. This study seeks to uncover how and when customer green involvement nurtures green service innovative behavior among hotel employees. The dataset was formed from the responses from 519 employees and 84 managers working in Vietnam-based hotels and analyzed via multilevel structural equation modeling. The results demonstrated the role of hotel employees’ green information management motivations (i.e., green information proactiveness, transparency, and formality) in mediating the positive relationship between customer green involvement and employee green service innovative behavior. Internal green marketing orientation functioned as an enhancer for the effects of customer green involvement on green information management motivations. This research contributes to the stream of green behavior research by bringing together customer green involvement and green service innovative behavior in the hospitality literature and unraveling the mechanisms behind their relationship.     

Does conspicuous decoration style influence customer's intention to purchase? The moderating effect of CSR practices

Using an experimental research design, this study examines the main effect of conspicuous hotel decoration style on consumer purchase intention, and tests the moderating role of corporate social responsibility (CSR) practices and the mediating role of image perception on the relationship between conspicuous decoration style and purchase intention with Chinese consumers. The results indicate that decoration style had a critical role in explaining Chinese customers’ purchase intention. Specifically, a low conspicuous decoration style led to stronger customer purchase intention than did a high conspicuous decoration style. The relationship between conspicuous decoration style and customer purchase intention was found to be fully mediated by image perception. The findings emphasize the significance of CSR in influencing Chinese customers’ purchase intention with hotels of a highly-conspicuous decoration style. Externally oriented CSR practices (i.e., corporate philanthropy, environmental protection) were found to be more significant in moderating the relationship between conspicuous decoration style and purchase intention than internally oriented CSR practice (i.e., employee treatment). Hotels engaging in philanthropy and environmental protection, can not only elicit a positive response from consumers, but also help mitigate the risks of a loss of organizational legitimacy as a result of high conspicuous decoration.     

The signaling effect of management response in engaging customers: A study of the hotel industry

Hotels today actively respond to online reviews given their tremendous influence on travelers' decisions. Yet, the questions of how to respond to online reviews continue to baffle hotel managers. By focusing on prospective travelers, we propose the effective management response signals hotels' care for customers and quality of service. Particularly, we postulate the frequency, speed and length of response influence the effectiveness of signaling in reducing information asymmetry. Based on the large-scale field data from TripAdvisor, this study demonstrates that the frequency and speed of response significantly enhance travelers’ engagement as indicated by more reviews, higher average valence, more votes for helpfulness, and higher popularity ranking. Furthermore, the frequent and speedy response is more effective for budget (vs. premium) hotels. Thus, management response to online reviews serves as a critical channel of communication to engage customers.     

Exploring hotel guests' perceptions of using robot assistants

The growing popularity of robot services blurs the boundaries of robotics and human life. Concomitant to the trend, many hotel brands have adopted a robot-based automation system in their properties. This study attempted to understand the underlying perceptions of the hotel guests' robot-using behaviors. A sample of 494 potential users of a hotel robot assistant was examined and analyzed. The result showed six factors, including three functional aspects (i.e., facilitating conditions, performance expectancy, and innovativeness) and three emotional aspects (i.e., social presence, hedonic motivation, and perceived importance). Moreover, this study categorized the respondents into cohesive groups that show similar characteristics. Based on different levels of perceptions and demographic information, four clusters were named as ‘The ordinary,’ ‘Enthusiastic adopter,’ ‘Tech laggard,’ and ‘Value seeker.’ The result of this study is expected to help the hotel industry to better target potential customers by understanding the different types of users of robotic technology.     

Enhancing online brand experiences: An application of congruity theory

Providing a distinctive brand experience is critical to differentiate each hotel brand from others, due to the intangible characteristics of the hotel industry. Rooted in congruity theory, this study investigated how three congruities (i.e., self-image congruity, online–offline brand image congruity, and value congruity) influenced customers’ online brand experiences and their brand trust. Results from this study indicated both self-image congruity and online–offline brand image congruity significantly influenced both customers’ online brand experiences and their trust toward the hotel's brand. Extending brand experience literature and congruity theory, this study suggested hotels should develop a strategy that could capture these three congruity effects in online and offline channels because these effects should be key determinants for customers’ online brand experiences and their responses.     

Analyzing Hotel Customers' E-Complaints from an Internet Complaint Forum

SUMMARY

Recent web technology advancement has enabled online customers to express their concerns and negative experiences about the hotel services over the Internet. This exploratory study attempts to provide some insights into this recent phenomenon by analyzing self-selected hotel customers' online complaints recorded on a specialized complaint forum, eComplaints.com. A content analysis of those e-Complaints in 18 problem categories revealed that online customers were mostly unhappy with fundamental service failures (i.e., declined service quality and rude employees) in the hotel service encounter. Surprisingly, only one in every five e-Complaints received a response from the hotel company in the identified top-five complaint categories. The authors further used text-mining software to identify most frequently complained keywords and examine their relational associations. Business implications of the research findings were also discussed.