Behavioural intentions in the motel industry : an empirical analysis

Abstract

The New Zealand hospitality sector has become increasingly competitive in the past decade. The increase in competition has prompted motel management to focus on generating favourable customers’ perceptions of their service as favourable perceptions encourage repeat purchase. Strategically, retaining existing customers and attracting new customers will be critical if motels are going to remain profitable in New Zealand’s competitive accommodation market.

There is a conceptual gap in the marketing literature as there has been very limited published research on service quality, value, customer satisfaction or behavioural intentions on the motel industry. This study seeks to fill this conceptual gap in the motel industry by identifying the dimensions of service quality, and empirically examining the interrelationships among the service quality dimensions, service quality, value, customer satisfaction, and behavioural intentions.

The findings of this study are based on the analysis of a sample of 349 respondents who stayed at a full service New Zealand motel on Riccarton Road in Christchurch. Of the 600 questionnaires distributed, a total of 349 useable responses were returned resulting in a 58.2% useable response rate. Support was found for use of the primary dimensions: Interaction Quality, Physical Environment Quality, and Outcome Quality as broad dimensions of service quality in a hierarchical factor structure for motels. Ten sub-dimensions of service quality, as perceived by motel customers, were determined using focus group interviews and exploratory factor analysis. These ten sub-dimensions were: (1) Staff Professionalism, (2) Accuracy of Reservation, (3) Tangibles, (4) Cleanliness and Comfort, (5) Noise Level, (5) Parking, (7) Security, (8) Accuracy of Billing, (9) Location, and (10) Pleasant Stay. Support for the hypothesised paths between Service Quality, Value (price), Satisfaction, and Favourable Behavioural Intentions was confirmed. The results of the regression analysis make a contribution to the service marketing theory by providing an empirically based insight into the Service Quality construct in the motel industry. The study also provides a framework for understanding the effects of the three primary dimensions on Service Quality and how Service Quality affects Value (price), Satisfaction, and Favourable Behavioural Intentions. Value (price) was also empirically supported as an important predictor variable that has a moderating effect on the relationship between service quality and customer satisfaction.