Measuring the Relative Importance of Service Dimensions in the Formation of Price Satisfaction and Service Satisfaction: A Case Study in the Hotel Industry

Abstract

Service quality, customer satisfaction and price are important selection criteria for the guests and key determinants of post‐purchase behavior such as word‐of‐mouth and repurchase. Using structural equation modelling, the authors of this study investigate the drivers of service and price satisfaction, and the impact of service and price satisfaction on loyalty. The results show that the five dimensions of service satisfaction differ in their relative importance as drivers of overall satisfaction and as drivers of price satisfaction, and that price satisfaction and service satisfaction influence guest loyalty to a different extent. This relationship is strongly moderated by the guests' nationality, indicating cross‐cultural differences in the importance of service dimensions. This study also investigates the three‐factor theory of customer satisfaction and shows that the relative impact of the service dimensions can be asymmetric.