A comprehensive hierarchical model of beach resort hotel stays in Thailand: an empirical analysis

Abstract

Beach resort hotels are unique service organizations in terms of their long stay duration and high customer involvement. Currently, beach resort hotels are in a very competitive marketing environment in Thailand. A study that develops a much deeper insight into the marketing constructs such as service quality and its dimensions, customer perceived value, satisfaction, corporate image, and customer loyalty is of vital importance for beach resort hotels to survive in the competitive market. Therefore, this study aims to adopt a comprehensive hierarchical modelling approach as a framework to identify the primary dimensions and sub-dimensions of service quality and to analyse the interrelationships between the five higher-order marketing constructs. This study uses mix method research to analyse the data. The data was collected in Phuket Province between April 1st and August 20th 2012 using a self-administered survey. Three focus group interviews and a pre-test preceded the data collection process. In addition, Exploratory Factor Analysis, Confirmatory Factor Analysis, and Structural Equation Modelling were used to analyse the data. The results support a comprehensive hierarchical structure of service quality for beach resort hotel stays that consists of eleventh first order sub-dimensions: attitude, behaviour, professionalism, décor & ambience, room quality, design, location & convenience, facility & activity, valence, waiting time and sociability, three second order primary dimensions: interaction, physical environment and outcome quality and overall service quality. The sub-dimensions that drive the three primary dimensions vary in number and importance. However, outcome quality is the most important primary dimension for overall service quality performance. Furthermore, customer satisfaction and corporate image are the two key determinants of customer loyalty. Service quality, corporate image and customer perceived value are three significant descriptors of customer satisfaction. Service quality is the most important determinant of customer satisfaction which is the most significant antecedent of customer loyalty. Service quality and customer perceived value are two significant determinants of corporate image. Lastly, customer satisfaction is a complete mediator on the relationship between service quality and customer loyalty, customer perceived value and customer loyalty.