The relationship between hotel staff service delivery with customer attitudinal loyalty and financial outcomes

Date
2013-01-01
Authors
Timmerman, John
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Tianshu Zheng
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Altmetrics
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Apparel, Events and Hospitality Management
Abstract

This research study tests the conceptual model of the service-profit chain construct that suggests a strong linkage between external service value, customer satisfaction, customer loyalty, and financial growth (Heskett, Jones, Loveman, Sasser, & Schlesinger, 2008). The study identified key variables of staff service delivery, customer attitudinal loyalty, and financial outcomes that conceptually match the service-profit chain construct within the context of the hotel experience. These key variables were analyzed from a sample of over 600,00 survey responses from 314 full-service hotels in North America over a two-year period of time.

Quantitative statistical methods were employed, including principal component analysis to identify latent factors of staff service delivery, customer attitudinal loyalty, and financial outcomes. A systematic eight-stage structural equation modeling was utilized to test the interdependent relationships of the staff service delivery, customer attitudinal loyalty, and financial outcome factors. Results from the study suggest that staff service delivery is an important measure of external service value and strongly correlated with customer attitudinal loyalty. Although the study did not provide results that indicate customer attitudinal loyalty influences financial outcomes, the findings demonstrated that customer satisfaction is a key component of customer attitudinal loyalty. This research study illustrates the importance for hotel owner and operators to measure, evaluate, and invest in staff service delivery to improve overall customer attitudinal loyalty.

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