How risky are services? An empirical investigation on the antecedents and consequences of perceived risk for hotel service

Previous research does not systematically investigate the antecedents and consequences of perceived risk for services in emerging markets. The present research aims to fill this void in the literature and examines the determinants and consequences of consumer risk perceptions for an experience service, hotel service. The present research models the antecedents at both the firm (company reputation and perceived price) and individual consumer (risk aversion and face consciousness) levels, and the consequences comprise word-of-mouth communication and switching intention. Though perceived risk is a multidimensional construct, past research tends to operationalize risk narrowly as either performance or financial risk. The author overcomes this limitation by studying perceived risk at the component level, and examines psychological, social, performance and financial risks separately. The results of a survey on Chinese consumers who have purchased hotel service recently indicate that both firm-level and individual-level antecedents directly influence perceived risk. While psychological and social risks positively affect word-of-mouth, they do not have significant influence on switching intention. In addition, performance risk increases switching intention but decreases word of mouth. The author discussed the theoretical and managerial implications, and suggested future research directions.     

Customers’ perceptions of service quality: Do servers’ age stereotypes matter?

This study aims to explore whether various service quality conditions and age stereotypes would affect perceptions of service quality in customers of fine dining restaurants in Taiwan. This research also identifies the moderating effect of servers’ age stereotype, age in-group bias, and respondents’ age on perceived service quality. A total of 406 subjects participated in the study with 2 (scenarios of service quality: favorable vs. unfavorable) × 2 (ages of server: young vs. middle-aged) between-subjects factorial design. The results showed that the respondents’ perceived service quality of server with young appearance was better than the counterpart with middle-aged appearance on tangibles and reliability dimensions under favorable and unfavorable service quality conditions. However, the differences were not significantly affected by servers’ age stereotypes.     

Free add-on services and perceived value in competitive environments: Evidence from online hotel reviews

This study investigates how free add-on services affect customers’ perceived value in horizontal and vertical competition. We collected 349,879 reviews about over 3000 hotels in 25 U.S. cities from TripAdvisor. Using three balanced data sets generated by coarsened exact matching, the ordered logistic regressions show that free hotel add-on services (including free breakfast, parking, and WiFi) positively affect consumers’ perceived value. However, increased horizontal and vertical competition differentially weakens the positive effects of free add-on services. We not only observe a negative moderating effect of horizontal competition, but also identify three patterns of the marginal effects of these three add-ons in horizontal competition. The moderating effect of vertical competition exists from the higher-grade hotel segment to a lower-grade hotel, but such an effect is insignificant from the lower-grade hotel segment to a higher-grade hotel. Therefore, hotel managers should consider diverse external competitive environments and design appropriate differentiated service strategies.     

An empathy lens into peer service providers: Personal versus commercial hosts

The focus of the peer-to-peer in tourism (Airbnb) has shifted recently from personal peer providers (i.e., individuals that rent a room) to commercial peer providers (i.e., companies that manage several Airbnb lodgings). While prior research encourages peer service providers (Airbnb hosts) to focus on social interactions, there is scant research on how consumers respond to the social dimension across the two peer provider types (personal vs. commercial provider). Two experimental studies (N = 600) reveal that consumers exhibit higher loyalty towards personal (vs. commercial) providers when they focus on communal norms, and this effect is driven via empathy. Study 2 examines the moderating effect of perceived warmth and demonstrates that low perceived warmth has a detrimental effect on loyalty among personal (vs. commercial) peer providers.     

How do consumers’ perceptions differ across dimensions of corporate social responsibility and hotel types?

This study develops three hypotheses regarding corporate social responsibility (CSR) in the context of the hotel industry. First, the study examines a ranking of consumers’ perceived importance of the four CSR dimensions proposed by Carroll’s hierarchy of CSR in 1991, expecting the following orders: philanthropic, ethical, legal, and economic dimensions, from most to least important. Second, the study investigates the relationship between consumers’ perceived importance of and their overall support for CSR. Third, the study introduces the type of hotel (for example, economy, mid-scale, and upscale) as a moderator to provide a better explanation of the relationship between consumers’ perceived importance of the CSR dimensions and support for CSR. Contributions to the CSR literature in general, and also specifically relating to the hotel context, and managerial implications are discussed.     

Experience quality,perceived value,satisfaction and behavioral intentions for heritage tourists

This paper examines the visitor experience of heritage tourism and investigates the relationships between the quality of those experiences, perceived value, satisfaction, and behavioral intentions. A total of 447 respondents completed a survey conducted at four main heritage sites in Tainan, Taiwan. Using structural equation modeling (SEM) technique, the results reveal the direct effects of the quality of experience on perceived value and satisfaction. However, it is the indirect and not direct effects of the quality of experience that impact on behavioral intentions when mediated by perceived value and satisfaction. Overall, the relationship “experience quality → perceived value → satisfaction → behavioral intentions” appears to be evident.     

The effect of COVID-19 on tourists’ intention to resume hotel consumption: The role of resilience

This study aims to better understand how one particular personal capacity—psychological resilience—may help consumers adapt to the ‘new normal’ provoked by the COVID-19 pandemic in the hotel context, which is characterized by high uncertainty. We conducted a quantitative empirical study among consumers of hotel services, which showed that their psychological resilience has a negative effect on their perceived health risk and emotional risk. This negative effect on risk helps increase tourist intention to return to consuming hotel services despite the on-going pandemic. The findings are of value to the literature and the professional sector alike, as they demonstrate both relationships jointly for the first time. The work can help hotel firms to design more effective strategies for approaching customers in the ‘new normal’.     

Corporate social responsibility (CSR) and customer loyalty in the hotel industry: A cross-country study

The study examines the role of customer perceptions of CSR in improving customer loyalty by exploring its direct and mediated effects through service quality, customer satisfaction, corporate image and corporate reputation in a cross-country setting. Data from Pakistan, China, and Italy was collected through surveys to explore customers’ hotel experiences. The hypotheses were tested with SmartPLS-3. Findings for the overall sample revealed that CSR affected customer loyalty positively and significantly. Nonetheless, this relationship was insignificant in the samples from Pakistan and Italy, while it was found to be only partially significant in China. The findings also revealed a direct, positive and significant impact of CSR on service quality, customer satisfaction, corporate image and corporate reputation. The direct relationships among all these variables were also significant across samples. Customer satisfaction and corporate image were identified as significant mediators of the CSR-loyalty link, but service quality and corporate reputation were found insignificant.     

Exotic reservations—Low-price guarantees

The increase in the volume of internet online bookings has had a major impact on distribution channels in the hotel industry. The popularity of such services stems from the consumers’ desire to obtain the lowest rate within their desired market segment. One possible cure is to offer the best rate guarantee. We show that current rate guarantees are essentially worthless to consumers; and demonstrate how a hotel company can structure a best rate guarantee that would provide value to consumers. In addition, we show, using a well-established exotic option pricing formula, how to price this best rate guarantee so that consumers would be willing to pay for the option.     

Towards an understanding of total service quality in hotels

The importance of service quality for business performance has been recognized in the literature through the direct effect on customer satisfaction and the indirect effect on customer loyalty. The importance was recognized by Parasuraman et al. [1985. A conceptual model of service quality and its implications for future research. Journal of Marketing 49(4), 41–51] in the development of SERVQUAL, a measure of perceived service quality across industries. Although the importance of service quality and service quality measurement has been recognized, there has been limited research that has addressed the structure and antecedents of the concept for the hotel industry.This research addresses the antecedents and structure of service quality in the context of the luxury and first class hotel sectors. The data are analysed using exploratory and confirmatory factor analysis approaches and a structural model is used to test the structure of service quality.The paper clarifies the dimensions and structure of service quality in the hotel industry. The clarification of the dimensions is important for managers in the hotel industry as it identifies the bundles of service attributes consumers find important. The clarification of the structure is also important as it confirms, in a hotel context, that customers see service quality in its entirety as a second order dimension.     

Strategic consumer behavior in online hotel booking

This study investigates strategic consumer behavior in online hotel booking. Free cancellation policies enable consumers to rebook the hotel room at a later time should the price drop prior to the date of stay. A discrete choice experiment is used to infer consumer preferences for free cancellation and non-refundable rates under different scenarios. The study also examines the moderating role of the risk attitude of consumers. Risk-seeking consumers show preference for a free cancellation rate that increases with the availability of an automatic rebooking service. Although a higher booking window increases the utility of the free cancellation rate, such impact decreases as risk propensity increases. The identification of four distinct consumer segments provides clear implications for industry practitioners.     

Does it matter who gets a better price? Antecedents and consequences of online price unfairness for advantaged and disadvantaged consumers

This study examines the moderating role of price inequalities in the antecedents and consequences of perceived price unfairness. We test a moderated mediation model on a sample of 994 consumers exposed to a hotel booking scenario either with an advantaged price (n = 496) or a disadvantaged one (n = 498). Our results show that the mechanisms through which perceived price unfairness is formed and its influence on price satisfaction and WOM significantly differ based on price inequalities. Furthermore, these findings highlight the importance of managing the potential negative consequences of unfair pricing not only for disadvantaged consumers, but also for advantaged ones.     

Customers’ cognitive,emotional, and actionable response to the servicescape: A test of the moderating effect of the restaurant type

This article explores the psychological processes by which the servicescape influences perceived service quality, pleasure-feeling, situational factor, and revisit intention. Drawing on Bitner's framework of environmental perception, the following questions are hypothesized: (1) Will the servicescape have a significant effect on customers’ perceived service quality and pleasure-feeling? (2) Do customers’ perceived service quality and pleasure-feeling positively influence revisit intention? (3) Does the situational factor, namely, the theme restaurant type have a moderation role among perceived service quality, pleasure-feeling, and revisit intention? The results emphasize that theme restaurant managers should seek an understanding of customers’ perception process in relation to emotion and cognition.     

Co-creating value in hotels using mobile devices: A conceptual model with empirical validation

The service-dominant (S-D) logic paradigm is increasingly gaining ground within the scholarly literature and current hotel industry practice. The S-D logic purports that consumers are no longer passive receivers of firms’ value propositions, but rather interact with firms in service settings, thus co-creating value. Using data from a general population sample of hotel consumers from the U.S., this study developed and validated empirically a conceptual model that recognizes the central role of consumers’ degree of value co-creation in creating valuable service experiences using mobile devices in hotels. It was found that the mobile (m-)commerce habit influences the degree of consumer co-creation, which in turn influences the perceived value of co-creation behavior. In addition, the perceived value of co-creation was found to influence consumers’ perceived value of the hotel stay and intentions to stay in a hotel that facilitates co-creation via the mobile environment.     

Moderating effects of presenteeism on the stress-happiness relationship of hotel employees: A note

This research note investigates the moderating effects of presenteeism on the stress-happiness relationship of 358 hotel employees in Sabah, Malaysia. The results support the moderating role of presenteeism in the relationship between stress and happiness. More specifically, the findings identify the presence of a non-monotonic relationship between perceived stress and happiness over the range of the degree of presenteeism. Contributions and limitations of the study are identified and discussed.     

The moderating roles of job control and work-life balance practices on employee stress in the hotel and catering industry

This study investigated the relationships among job stressors, coping resources, and job stress. Data were collected from food service employees (n = 255) in the hotel and catering industry. Hierarchical regression showed main significant effects of job demands and job control and three-way (job demands × job control × work-life balance practices) interactions on job stress. The results further demonstrated that high job demands coupled with low job control and the availability of work-life balance practices resulted in a higher level of stress. Implications for Karasek's job demand–control model, managerial practice and future research are provided.     

Error management at different organizational levels - Frontline, manager, and company

The influence of service recovery efforts in the form of apology (error management) at three organizational levels - frontline, manager, and company - on consumer satisfaction and behavioral intentions was examined with a 2 × 2 × 2 experimental study. Results support the main effects of all three apology levels on consumer satisfaction with the service exchange (recovery) process. The results also indicate that frontline apology has greater influence on consumers’ satisfaction when a manager's apology is also present. Moreover, the study identifies perceived control and fairness as mediators of the relationships between apology levels and consumer satisfaction indicating potential theoretical and managerial implications.     

Examining the effects of robotic service on brand experience: the moderating role of hotel segment

This research investigates the effects of robotic service on guest evaluations of hotel brand experience, and examines the moderating effects of hotel segment via a 2 (service delivery video: human or robot) x 3 (hotel segment: budget, midscale, or luxury) between-subjects experimental design. The findings suggest higher levels of sensory and intellectual experience from robotic service but lower levels of affective experience. For behavioral experience, robotic service influenced a higher rating for midscale and budget hotels, but not for a luxury hotel. Overall, robotic service may not necessarily enhance brand experience as influenced by the moderating role of hotel segment.     

Luxury hotels going green – the antecedents and consequences of consumer hesitation

Abstract

Luxury hotels might hesitate to operate in a more environmentally friendly way because they worry such practices will harm their performance. However, hotels can have a significant impact on the natural environment. Building on protection motivation theory, this study examines consumers’ evaluations of luxury hotels that are becoming more environmentally friendly by investigating the influences of perceived risks (i.e. functional, financial, hedonic, and self-image risks) on consumers’ hesitation and subsequent purchase intentions. Additionally, the moderating effect of consumers’ green hotel knowledge on the influences of perceived risks on hesitation is examined. Questionnaires were completed by 548 participants from Taiwan and revealed that perceived risks can significantly influence hesitation, which can in turn affect purchase intentions. Furthermore, green hotel knowledge moderates the influence of perceived functional and hedonic risks on hesitation. This study’s contributions to the luxury product consumption literature and sustainable tourism studies are discussed.     

The impact of perceived benefits and risks on current and desired levels of outsourcing: Hotel managers’ perspective

The purpose of this paper was to investigate the interactions between perceived benefits and risks of outsourcing and outsourcing adoption from the hoteliers’ perspective. Data were collected from 123 hotels in Egypt using a list of 32 hotel activities. Results revealed that managers’ perceived benefits of outsourcing had a direct positive effect on the current level of outsourcing, while indirect effects on the desired level of outsourcing. Interestingly, results confirmed the mediating role of current outsourcing between managers’ perceived benefits and the desired outsourcing. However, the perceived risks of outsourcing had a nonsignificant moderating effect. The findings provide implications for both theory and practice.