Customer Behavioural Intentions in the Hospitality Industry

By Wong, Amy; Dean, Alison M. et al. | Australian Journal of Hospitality Management, Autumn 1999 | Go to article overview

Customer Behavioural Intentions in the Hospitality Industry


Wong, Amy, Dean, Alison M., White, Christopher J., Australian Journal of Hospitality Management


Abstract

This paper reports on a study that refined and tested an instrument that was designed to monitor behaviours associated with customers' intentions towards a service or a firm. The refined instrument was aimed at measuring customers `intentions in the hospitality industry. During the months from July to October, 1998, a total of 1 000 questionnaires were distributed to five Australian hotels of three to five-star standard. Key findings of the study suggested that there were three dimensions of behavioural intentions in the hospitality industry: loyalty to company; propensity to switch; and willingness to pay more, with loyalty to the company emerging as the best predictor of overall behavioural intentions. These results have implications for both managers and academics in the hospitality field

Keywords: Customer Loyalty, Behavioural Intentions, Hospitality Industry

Introduction

As the overall pattern of world trade is changing, new technologies and increasing global competition are transforming markets. As a result, many organisations are seeking innovative ways to achieve competitive advantage and improve efficiency without sacrificing quality of service. This has forced marketers to rethink their marketing strategies and position (Javalgi and Moberg 1997). The current consumer climate and competition for market share has pressured managers to focus on customer retention as well as customer satisfaction (Pritchard and Howard 1997). Research has shown that it is a more profitable strategy to increase customer retention rates than to gain market share or reduce costs (Reichheld and Sasser 1990).

It has been demonstrated that a marginal change in customer retention rate has significant effects on future revenue, as increasing customer retention by a mere five per cent can increase profitability by up to eighty per cent (Gould, 1995). Doing business with repeat customers reduces costs of:

* advertising to entice new customers;

* personal selling to solicit new prospects;

* setting up new accounts;

* explaining business procedures to new clients;

* inefficient dealings during new customers' learning processes

(Peppers and Rogers 1993).

As suggested by Zeithaml, Berry and Parasuraman (1996), the longevity of a customer's relationship with a firm favourably influences profitability. Customers who remain with a firm for a period of years because they are pleased with the service are more likely than short-term customers to buy additional services or spread favourable word-of-mouth communication. The firm may also charge a higher price than other companies as these customers value maintaining their relationship with the servico provider (Zeithaml et al. 1996). Additionally, these long-standing customers are more likely to be responsive to the suggestion of buying a greater variety of products and services from the firm (Gould 1995). The initial costs of attracting and establishing these customers have already been absorbed and, due to experience curve effects, they can often be served more efficiently (Reichheld and Sasser 1990).

Measuring Customer Loyalty

Clearly, there are many good reasons for marketers and managers to concentrate on retaining customers. Understanding the behaviours and conditions that foster repeat patronage is an important part of this endeavour. Traditionally, much of the research concerned with understanding behaviours associated with customer buying-intentions has focused on customer loyalty, which has been defined and measured in attitudinal and or behavioural terms (Javalgi and Moberg 1997). Loyalty is usually determined by measuring customers' preferences towards a product, the number of purchases or the amount of brand-switching. Usually, this information was obtained with the use of one or two item scales (Boulding, Kalra, Staelin and Zeithaml 1993; Cronin and Taylor 1992). …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Customer Behavioural Intentions in the Hospitality Industry
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.