Feiertag Hospitality Academy-to-Industry Research

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The Feiertag Hospitality Academy-to-Industry Research Collection brings together research from the academic world with articles written for industry so all can benefit from those insights. The collection includes peer-reviewed academic research in the area of Hospitality Sales and it translates research recommendations and best practices models into a language useful to the hospitality practitioner. This collection aims to bridge the gap between the academy and the hospitality industry.

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An Analysis of the Effect of Compensation Offerings on the Turnover Intentions of Restaurant Managing Partners for Outback Steakhouse
Murphy, Kevin S. (Virginia Tech, 2000-12-12)
The restaurant industry has long been characterized by a high rate of "turnover, low wages, primitive technology, controlling management and an unimpressive benefits package"(Sullivan, 1999). " The most serious issue for employers today -in all industries- is hiring and keeping qualified and capable employees" according to Donald Marshack, senior analyst at the U.S. Bureau of Labor Statistics (BLS)(2000). The primary purpose of this study was to examine the perceived notion that the compensation plan of Outback Steakhouse reduces the intention to turnover of its unit level managing partners. Specifically the research focused on a survey of general manager's attitudes in regards to their intentions to seek out new employment and the effect of the compensation plan provided by Outback Steakhouse on their intention to turnover. The Objective of the study was to investigate the current management compensation practices of the managing partners of Outback Steakhouse, while identifying the relationship between management compensation and the intention to turnover for proprietors at Outback Steakhouse restaurants. A further objective was to establish the relationship between employee turnover and employee turnover intentions as a predictor of separation from an organization. A survey instrument was utilized to gather information for this study was sent by mail to all of the 600 general managers of Outback Steakhouses listed on the company's web site in the US. The survey contained questions designed to measure the influence of the compensation package on the general managers' intent to turnover, and the degree of influence each element of the compensation package had on their intention to quit. The results showed that the correlation coefficient indicated 5 out of the 8 monetary compensation variables had a significant positive relationship with the compensation plan and reducing turnover intentions. A forward regression analysis was conducted comparing all of the compensation elements. This was done for the purpose of determining which variables would be the best predictors of respondents desire to stay with Outback because of the positive influence the compensation package, as a whole, has on them. When the computations were completed, two variables, deferred compensation and stock option, explained 41.7% of the sample variation (RÂ² = .417) and 39.8% of the population variation (Adjusted RÂ² = .398).
The antecedent factors and entry mode choice of multinational lodging firms: the case of growth strategies into new international markets
Zhao, Jinlin (Virginia Tech, 1994)
The primary objective of this study was to utilize an exploratory research methodology to determine relationships among the antecedent factors and entry mode choices of multinational lodging firms. A basic framework was developed based on the review of the literature of multinational strategy, international business theories and concepts and hospitality management strategy. A qualitative research approach, specifically a multiple-case study method was used. The data was collected through interviews and secondary resources of five multinational lodging companies, analyzed through summary tables and matrices. The findings from the research included sixteen propositions that explain the relationships among the antecedent factors and entry mode choices in the multinational lodging operations. A framework was developed to illustrate the antecedent factors which may support the entry mode choices of the multinational lodging companies. Factors in the framework include those from the external environment: taxation and repatriation in the political dimension, infrastructure and tourism related factors in the economic dimension, adaptation to local needs and expectations in the socio-cultural dimension, investment and sharing technology in the technological dimension and awareness of the natural environment in the ecological dimension. Antecedent factors in the internal environment include: local and regional competitors, international and local customers, gateway and commercial centers of property locations, the strengths and weaknesses in tangible and intangible assets and partner selection criteria. These factors were found to have an important influence on the entry mode choices of the five participating multinational lodging companies.
Assessing the hotel requirements of professional sports teams for the hotel industry
Summa, Tosporn (Virginia Tech, 1994)
The sports market can produce a consistent and lucrative market for the hotel industry which now is experiencing slow growth and intense competition. In addition to generating revenues, hosting professional sports teams provides excellent public relations and prestige for hotel properties. An extensive literature search indicates that there is a need for descriptive research on targeting professional teams’ markets within the hotel industry. The purpose of this study was to identify the professional sports teams' needs (the requirements they seek) when selecting hotel accommodations. Then, based on the findings of the study, the information was presented as a guide for hotel executives to enhance their marketing strategies in capturing these markets. Also, the findings hoped to make a contribution to the growing body of knowledge of the sports market within the hotel industry. Baseball, football, and basketball were the top three popular sports in terms of attendance in 1988-1990 in the United States; therefore, the sample for this study was 28 Major League Baseball teams, 28 National Football League (NFL) teams, and 27 National Basketball Association (NBA) teams. The principal research tool was a mail survey. Also, telephone interviews were implemented to gather in-depth information and to provide a follow-up of the survey. The results of the study showed that each professional team has different requirements depending on the type of sport. Moreover, individual team policies determine the services a team will want during its stay at a hotel. It is apparent Major League Baseball teams generate the most revenue for the hotel industry compared to the NFL and the NBA teams.
Bed and breakfasts in Virginia: identification and success factors
Kaufman, Tammie J. (Virginia Tech, 1994-04-18)
Virginia bed and breakfast operations were researched in order to determine the attitudes/beliefs which were necessary for success in the bed and breakfast industry. The objectives of the study were to: (1) identify demographics of Virginia bed and breakfast operations; (2) identify successful bed and breakfast operations based upon their self definition of success; (3) identify the attitudes and beliefs operators believe are necessary for success in running a bed and breakfast operation and correlate attitudes with operators' actual behaviors; and (4) based upon the operator's self-definition of success, compare the correlations identified in the previous objective between successful and other operators. Data was collected by utilizing a mailed questionnaire. Pearson's correlation was used to determine if there were any relationships present between what attitudes/beliefs bed and breakfast operators perceived to be necessary for success and their actual behavior. Fishers r to z transformation was used ta determine if the relationship between the attitudes/beliefs perceived ta be necessary far success and operator's actual behavior was greater among successful bed and breakfast operations based upon a self definition of success. The results found that the correlation between the attitude/belief, past experience and actual past experience in hotels, restaurants, and large organizations was significant in the success group as well as high knowledge of cash flow/accounting and use of financial data. Stronger correlations were present in interpersonal skills, good relationship with employees and guests in the success group versus other group. Past experience in and knowledge of the bed and breakfast industry as well as family support were significantly correlated in the success group.
The Booking Window Evolution and its Impact on Hotel Revenue Management Forecasting
Webb, Timothy Dayton (Virginia Tech, 2018-01-05)
Travel booking behavior has changed substantially over the past two decades. The emergence of new technology and online intermediaries has provided travelers with the flexibility to book up until the date of stay. This has created a fast-paced, dynamic booking environment that disrupts traditional revenue management strategies focused on pricing and allocating rooms based on the time of purchase. The study explores the joint effects of technology and the economy on booking window lead times. It also evaluates a range of forecasting techniques and the importance of utilizing the booking curve for forecasting in dynamic booking environments.
A case study: creating and sustaining competitive advantage through an information technology application in the lodging industry
Cho, Wonae (Virginia Tech, 1996-09-26)
The use of information technology (IT) is becoming an essential component within the commercial sector. While large number of companies have adopted IT applications to achieve competitive advantage, and number of studies have been done on competitive advantage through an IT application, it is not clear what the impact of an IT application on competitive advantage is. The purpose of this study was to examine the impact of an IT application on competitive advantage and how to create and sustain competitive advantage through an IT application. For that purpose, this study adopted Sethi and King's (1994) instrumental tool, while the theory of resource based view of the firm (RBV) was the theoretical underpinning for the investigation of how to create and sustain competitive advantage through an IT application. In other words, this study examined how an IT application impacts the seven dimensions which are attributes of competitive advantage through an IT application, and how a firm's resources and capabilities, which are measured in three dimensions. moderate the impact of an IT application on competitive advantage. The three dimensions were identified from the review of literature concerning on the theory of RBV.
A Causal Model of Linkages between Environment and Organizational Structure, and Its Performance Implications in International Service Distribution: An Empirical Study of Restaurant and Hotel Industry
Kim, Seehyung (Virginia Tech, 2005-04-14)
This research develops and tests a model of the service unit ownership and control patterns used by international service companies. The main purpose of this study is to investigate trivariate causal relationships among environmental factors, organizational structure, and perceived performance in the internationalization process of service firms. A service firm operating in foreign soil has a choice of three general entry mode strategies offering different degrees of ownership and control of its remote operating units located in foreign countries -- full ownership arrangement, joint venture arrangement, and franchising arrangement. The entry mode strategies chosen depend on the factors relating to internal environment of a specific firm, industry related factors in which the firm operates, and external environment of the operating units at national context. This study identifies these factors, investigates how they affect the firm's choice of entry modes, and finally examines the impact of entry mode on firm's performance. The overall model has been explained by contingency theory that conceptualizes optimal level of ownership and control mode as a response by the firm to the interplay of environmental factors and as a determinant of firm's performance. To this core can be added complementary theories which are borrowed from agency theory, transaction cost theory, and resource dependence theory. These theories explain the linkages between market entry mode and each type of environmental factors. In order to empirically test the hypotheses, data were collected from hospitality firms regarding the ownership structure of subsidiaries located in foreign countries. As a whole, the conceptual model developed in the study received strong support from the empirical study. This study found a positive impact of contingency fit on performance and so support contingency theory in which some combinations of the environmental dimensions and organizational structure will lead to better organizational performance. Another finding of this study indicates that the increased level of ownership and control will result in enhancing the level of perceived performance. It should be noted that contingency model-based mode choice would provide managers with the optimal performance because there is not one best performing mode choice in volatile international market. Next, the relationship of market environment with organizational structure was examined through three different perspectives. Market environment was investigated at firm, industry, and national context, which includes five factors -- monitoring uncertainty, asset specificity, cultural distance, political uncertainty, and economic uncertainty. The model is suggestive of a picture in which five environmental factors vie for affecting the choice of market entry modes. All five environmental factors were found to be significantly related to firms' organizational structure. Among five environmental factors, cultural uncertainty has the largest effect on the choice of entry mode followed by monitoring uncertainty, political uncertainty, asset specificity, and economic uncertainty. One of the important implications of this research is the inclusion of franchising as an actual management strategy and competitive business practice that is related to international ownership and control strategy. Higher degrees of uncertainty associated with the foreign market encourage external dependence of the venture, in which the operation depends more heavily on local relationships. Franchising substitutes the loss of ownership by an increase of external relationships and it takes without losing control on retail operation. Resource exploitation depends on the local market for either inputs or outputs for better performance. Understanding the fit between the each set of contingent variables and the elements of ownership and control strategy will allow marketers to determine when franchising is the suitable mode of operation in global markets. Collectively, these results suggest that the choice of an organizational form for international service firms involves a complex balance of firm, industry, and country level factors. Managers can maximize performance by aligning entry mode strategy with external contextual circumstances as well as internal resources. Managers may also be able to make better mode choice decisions using the theory-driven criteria examined in this study, increasing their chances for financial and non-financial success.
Changes in Resident Perceptions Over Time: A Theoretical Examination of a Mega-Event
Blosser, Phillip E. (Virginia Tech, 2009-08-05)
Cities and countries increasingly seek mega-events to boost tourism, update local infrastructure, and improve the international standing of the host community. Benefits are actively promoted by the organizing committees, but these large-scale events also create significant economic, environmental and social costs for the host community. Measuring resident support is necessary because their support is required to secure the rights to the event, and to provide the necessary economic and human resources needed for hosting the event. This study utilized existing data on the 1996 Atlanta Olympic Games to investigate the impact of a mega-event on the host community, and to measure resident support for the event. Social exchange theory provided the theoretical background for this dissertation. The theory states that the costs and benefits of an exchange are continually re-evaluated by the actors in the exchange relationship. The primary contribution of this study is support for the notion that social exchanges are temporal in nature; residents continually monitored the positive and negative impacts of the event on themselves and on their community. To reach this conclusion, this study utilized four data points in the year leading up to the Olympics to assess the changes in residents’ perceptions of the impacts of the event over time. These changes were evaluated in light of residents’ support for the event. A factor analysis reduced the fifteen impact statements into three factors: Benefits, Local Problems, and External Problems. Residents were segmented according to their assessment of the event impacts, resulting in three clusters: Supporters, Cynics, and Realists. Proximity to the main event location also was evaluated since this variable has had mixed results in previous resident studies. Results showed that resident perceptions varied over time, thus providing support for monitoring residents over multiple time periods. In addition, residents’ support and residents’ plans to attend the event were contributing factors in the assessment of the Benefits and Local Problems. Supporters, Cynics, and Realists demonstrated significant differences over time in their assessment of External Problems, and proximity to the event was found to be a significant factor in residents’ assessment of Local Problems.
Chefs' perceptions of convenience food products in university food service operations
Dallinger, Ioana (Virginia Tech, 2013-12-03)
The decision regarding when and to what extent to use convenience food products is a perennial issue in the hospitality industry. Despite the pertinence of this issue in the industry, it has never been explicitly examined in the hospitality literature. Potential advantages of adopting convenience food products in food-service operations include: savings in time and costs, better portion and cost control, ease of training and evaluation, superior customer relationships through product consistency, increased safety, ease of storage, and added eye appeal. On the other hand, noticeable disadvantages may include: staff motivation problems, facilitated labor mobility, increased emotional labor for supervisor, health and nutrition down-sides, and more waste. Therefore, to further explore this issue, a paper and pencil survey was administered to culinary managers in a large university dining setting. Respondents included 132 chefs representing ten dining facilities. The results indicate that even though the time and labor cost savings brought about by the use of convenience food products are perceived as advantageous, the implied consistency of the final product and superior portion control are not as important. Furthermore, customer relationships, catering to special groups, and final products' eye appeal appear to be better facilitated by non-convenience foods. Even though it is easier to train chefs/ cooks/ employees to use convenience food products rather than non-convenience ones and these employees appear to be under less psychological pressure in their jobs, they will conversely be less motivated and worse paid. The theoretical and practical implications of these findings are discussed herein.
Co-alignment between Environment Risk, Corporate Strategy, Capital Structure, and Firm Performance: An Empirical Investigation of Restaurant Firms
Chathoth, Prakash K. (Virginia Tech, 2002-05-02)
The importance of testing the co-alignment model has been emphasized by several researchers in the past. The present study is an attempt to test the model using theories in corporate finance and strategic management, which will also prove the commonalties that exist between these domains of business research. This will help support the arguments of some researchers in the hospitality industry who have stressed the importance of assessing the firm's strategies using concepts in finance. The overall objective of this study is to test the viability of the co-alignment model using strategic management and corporate finance theory. The present study identifies the dimensions and variables using prior research within each of the constructs studied under the management and corporate finance domains, vis-a-vis environment risk, corporate strategy, capital structure and firm performance. The relationship between the constructs and dimensions were tested for the dependencies between them using surrogates used in prior research through a priori hypothesized relationships. The unit of analysis was the corporate level, and hence, the study included corporate level data of restaurant firms. The research design included cross-sectional data of restaurant firms that were averaged across an a priori defined time period. These firms were selected based on certain criteria that helped control for country effects and industry effects. Therefore, the publicly traded firms selected as part of the sample were based in the U.S. serving markets predominantly within the country. The statistical analysis was conducted using cross-sectional regression. Results indicate that a high variance in firm performance is explained by the co-alignment between environment risk, corporate strategy, and capital structure. Furthermore, the hypothesized relationships between variables that represent the constructs hold good while using accrual and cash flow returns as surrogates of firm performance. This key finding provides the base for future research efforts, which could focus on developing the model through the use of surrogates that are used in both strategic management and corporate finance research. Also, the sample could be extended to include privately owned restaurant firms that serve markets within the U.S., which will help improve the generalizability of the co-alignment model.
Co-alignment Framework for Evaluating the Implementation of the Tourism Satellite Accounts - A Case study of Tanzania
Sharma, Amit (Virginia Tech, 2002-06-17)
The poor quality and fragmented state of international statistics for the hospitality and tourism sector lead international organizations like the World Tourism Organization (WTO), Organization of Economic Cooperation and Development (OECD) and the United Nations to develop and recognize a universally acceptable framework of tourism statistics. These efforts culminated into the development of the Tourism Satellite Accounts (TSA), the very first sector specific Satellite System of Accounts approved by the United Nations. The WTO has since made numerous efforts to promote the implementation of the TSA, more so in the developing countries. While the process is gaining momentum, the implementation of the entire TSA framework is a tedious procedure requiring a high level of financial and non-financial resources. This paradox, of scarce resources required for TSA implementation in developing countries that are in most need of its benefits, has been the crucial motivation for this research project. The present study proposes a framework for evaluating the implementation of the TSA so that the process is manageable and is able to economize on various resources required to implement this comprehensive statistical database. Using Tanzania as the case study, this research verifies the proposed framework for evaluating the TSA's implementation. The underlying model for the proposed implementation framework is the Co-alignment principle from the field of Strategic Management. Evidence of existence of the characteristics of Co-alignment model's components is verified, given the particular experience of TSA implementation in Tanzania. The results suggest that the process in Tanzania is currently misaligned and may require reallocation of certain resources to increase the effectiveness of TSA implementation. In context of the Co-alignment principle, there is evidence that the end-user needs have not been explicitly established. There is also a lack of knowledge regarding gaps that exist between the current statistical databases and how the TSA would be able to fill these shortcomings. This is true for both additional datasets required and the much needed improvements in statistical methodology. Furthermore, there is no clear prioritization of implementation tasks, which is contributing to the lack of financial sustainability of the project. There is indication that the allocation of current resources is misaligned with the requirements for developing institutional capacity, training, stakeholder support, (particularly with the private sector operators) and building a stable legislative framework to support the entire process. Finally, there are no clear performance monitoring and evaluation criteria to assess the ongoing performance of the implementation process as well as that of the entire statistical database. This is crucial to insure effectiveness of the resource allocation process. The conclusions from these observations have been proposed as recommendations to align the process of TSA implementation in Tanzania with the objective of increasing the efficiency of these ongoing efforts at the Ministry of Natural Resources and Tourism. Furthermore, it has been suggested that the proposed evaluation framework can be used for assessing the effectiveness of implementing any generic national or regional statistical database.
Co-Branding as a Market-Driven Strategic Financial Investment Option in the Hospitality Industry
Hahm, Sung-Pil (Virginia Tech, 2001-04-20)
The purpose of this study was to examine the trends in co-branding, especially when one brand is linked with another brand through a business strategy, in order to investigate the factors that lead to co-branding as a strategic investment option in the hospitality industry. Of primary interest was whether co-branding strategies are significant issues in the hospitality industry. This study also investigated the relationship between explicit and implicit requirements and timing of entry for co-branding investment. The co-branding investment model developed for this study could be a valuable asset for the hospitality industry. The results of this study indicated that there were some relationships among implicit and explicit requirements and the timing of co-branding entry, especially the finding that restaurateurs who had a strong market share emphasis and long franchising experience were more willing to invest in co-branding. Also restaurateurs who were not satisfied with prior sales performance were more likely to invest in the co-branding concept. We also discovered that investors in co-branding, no matter whether early or late movers, are usually satisfied with the performance of their co-branded stores. This study clearly showed that co-branding investment activities were widely practiced among franchisees, regardless of how many years of experience they had, or if they were large, or small local companies.
Comparative Analysis of Mature Travelers on the Basis of Internet Use
Cho, SeongMin (Virginia Tech, 2002-02-18)
Travel and tourism marketers face a highly competitive environment brought on by the changing demographics of the U.S. population, the most significant change being the growth in size of the mature segment of the population. In terms of market size, there are currently 73 million people age 50 and older, comprising nearly one-fourth of the U.S. population (U.S. Census Bureau 2000). That number is expected to rise to 96 million by 2010, representing one-third of the population (Rasmusson 2000). A swelling population is not the only enticement that this age group offers. It is important to note that many mature consumers have deep pockets and a strong desire to spend. In fact, they control more than three-quarters of the wealth and one-half of the discretionary income in the nation. It is also estimated that they lay claim to three-fourths of the country's financial assets and boast more than $1 trillion in annual buying power. When all is said and done, this age group accounts for 40 percent of the total consumer demand in the United States (Swartz, 1999). However, even though recognizing the significance of the mature market in terms of their market size and economic potential, little research has been conducted to identify and understand the mature travelers who use the Internet.The main purpose of this study is to profile mature travelers on the basis of Internet use. More specifically, the intention is to examine the demographic and socio-economic characteristics of mature travelers who use the Internet compared to those who do not use the Internet. In addition, the purpose of the present study is to examine whether or not differences exist between Internet users and Internet non-users among mature travelers with respect to travel behavior. Attention is paid to investigate types of trip selected, the preferred activities participated in during the travel, length of stay, travel-related expenditures, type of lodging, type of transportation, number in the travel party, and type of travel party in explaining the differences between Internet users and Internet non-users of the mature market.Data were collected by utilizing a mailed questionnaire. 433 responses (23.44 percent of the total target population) were coded and used for data analysis. Data were analyzed by employing three types of data analysis: chi-square tests of independence; t-tests; and multiple discriminant analysis.The findings in the present study suggest that there are numerous differences in demographics, socio-economic characteristics, and travel characteristics between Internet users and Internet non-users among mature travelers. As a whole, for example, the results revealed that mature travelers who use the Internet were more likely to be younger, have higher annual household incomes, and have higher levels of education than mature travelers who do not use the Internet. Also, the results indicated that mature travelers who are still working are more likely to use the Internet than those who are not working. By understanding and utilizing information gathered from Internet users' and Internet non-users' demographics, socio-economic characteristics, and travel characteristics, tourism planners and marketers can develop appropriate and effective marketing strategies that appeal to mature travelers.
A Comparative Analysis of the Travel Behavior of Black and White Travelers
Gailliard, Flora Montgomery (Virginia Tech, 1998-07-16)
Tourism, leisure and recreation are considered to be an important form of interaction between cultures and are a basic part of social life (McMillen,1984; Hutchinson and Fidel,1985). The experiences received by participating in various tourism activities may be different due to racial influences. Although in general terms, travelers may have similarities, the ethnic heritage, social and cultural differences between different racial groups produce distinct patterns of leisure travel and recreational behavior. Demographic factors such as age, education, race, gender and income, occupation and residence may all be related to each other and determine the buying power of the consumer which thus influences travel behavior. African Americans represent more than $400 billion in purchasing power while comprising slightly over 12.5% of the U.S. population (Whigham-Desir,1996). As the largest non-white group in the U.S., African Americans continue to grow into a substantial force in the marketplace. More specifically, Blacks consume a diverse range of products and services. The results of a "Target Market News-The Buying Power of Black America" survey (1996) showed that blacks spent $1.8 billion dollars on entertainment and leisure and $4.2 billion in travel and lodging. According to Mroun and Whigham-Desir (1997), Blacks have an estimated $25 billion in travel spending power and as a result, are gaining the attention of the $440 billion U.S. travel industry. Research investigating the social conditions of marginality (lower income status, lower educational level, lower occupational status and segregated residence) in influencing travel behavior is sparse to none. Little focus has been placed on this relationship and how it affects travel behavior. The purpose of this study was to examine whether or not differences exist between black and white travelers with respect to travel behavior. More specifically, this study investigated whether the marginality predictors, income, education, occupation and residence contributed to differences between black and white travelers in the type of trips selected, length of stay and activities participated in during leisure travel, and whether these differences (if any) persist when controlled for race.The data were collected through telephone interviews with members of a sample of residents in the six southeastern states of Alabama, Georgia, Louisiana, Mississippi, South Carolina and Tennessee. Only those respondents who reported taking a leisure trip at least two nights away from home during the past year and those respondents who identified themselves as black or white were considered to participate in this study. A total of 500 surveys were completed of whom 225(45%) were black and 275 (55%) were white. Data were analyzed by involving three types of data analysis. Significant differences between the samples were identified using chi-square or difference of means tests. The effects of culture and of selected variables were assessed through log-linear modeling and analysis of variance. All of the hypotheses for this study were tested and partially confirmed. While important similarities existed among black and white travelers, findings of the study suggested that blacks and whites do significantly differ in terms of length of stay and income and occupation; type of trip and income, occupation and residence; activities and income, education, occupation and residence; and race and type of trip and race and activities. Tests of the effects of race as opposed to marginality predictors upon travel variables identified race as a predictor of leisure travel and the socio-economic covariates as significant predictors in some instances. Findings of the research suggest implications associated with the developing of effective marketing strategies targeted to the African American population and their estimated $25 billion in travel spending power.
The Competitive Market Structure of the U.S. Lodging Industry and its Impact on the Financial Performance of Hotel Brands
Matovic, Dragan (Virginia Tech, 2002-04-17)
The primary objective of this study was to explore the relationship among various market structure constructs (consisting of barriers to entry, competition, growth, and market share) and their potential impact on financial performance. By applying theoretical underpinnings from the disciplines of marketing, strategy and industrial organization economics, and adapting them to the unique characteristics of the U.S. lodging industry, the above constructs were linked to produce the Lodging Market Structure (LMS) Model. The study consisted of a cross-sectional analysis using a sample of 67 well-recognized hotel brands operating in the U.S. (representing 63 percent of the national guestroom inventory), covering a four-year period between 1996 and 1999. Correlation and multiple regression analysis were used to examine the hypothesized relationships within the LMS model. This study represented the first comprehensive investigation of the competitive market structure of the U.S. lodging industry. The key findings of the study indicate that the financial performance of hotel brands in the United States is strongly impacted by competitive market structure. Among the various market structure constructs studied, barriers to entry played the most dominant role in determining the level of financial performance of hotel brands. Based on a strong negative relationship, barriers to entry are very effective in reducing competition in the U.S. lodging industry. Also, of the constructs studied, barriers to entry had the greatest influence on enhancing the market share of incumbent hotel brands. The growth rate of those incumbent brands has a positive relationship with barriers to entry. As competition intensifies, the growth rate of hotel brands slows down. Increases in competition are negatively correlated with a brand's market share. Competition has a strong negative relationship with the financial performance of hotel brands. Market share improves as the growth rate of hotel brands increases. As the growth rate of brands increases, profitability also improves. Likewise, improvements in a hotel brand's market share are positively related to increases in profitability. Lastly, the U.S. lodging market is becoming more competitive, and the industry has reached the mature stage of its lifecycle.
Consumer Choice of Hotel Experiences: The Effects of Cognitive, Affective, and Sensory Attributes
Kim, Dohee (Virginia Tech, 2011-07-06)
Understanding the choice behavior of customers is crucial for effective service management and marketing in the hospitality industry. The first purpose of this dissertation is to examine the differential effects that cognitive, affective, and sensory attributes have on consumer hotel choice. The second purpose is to examine the moderating effects of consumer choice context on the relationship between the cognitive, affective, and sensory attributes and hotel choice. To achieve these two purposes, this dissertation includes the design of a choice experiment to examine how cognitive, affective, and sensory attributes predict consumer hotel choice using multinomial logit (MNL) and random parameter (or mixed) logit (RPL) models. For choice experiments, the main objectives are to determine the choice attributes and attribute levels to be used for the choice modeling and to create an optimal choice design. I used a Bayesian D-optimal design for the choice experiment, which I assess from the DOE (design of experiment) procedure outlined in JMP 8.0. The primary analysis associated with discrete choice analysis is the log-likelihood ratio (LR) test and the estimation of the parameters (known as part-worth utilities), using LIMDEP 9.0. The results showed that the addition of affective and sensory attributes to the choice model better explained hotel choice compared to the model with only cognitive attributes. The second purpose is to examine the moderating effects of choice context on the relationship between cognitive, affective, and sensory attributes and hotel choice. Using a stated choice model, respondents were randomly divided into two different groups and asked to evaluate their preference for two differently manipulated choice sets. For this purpose, it is necessary to include interaction effects in the choice model. This study identified the differences among choice criteria based on two different contexts. Among eight interaction effects, four interaction effects with the contexts -- price, comfortable, room quality, and atmosphere -- were statistically significant on hotel choice. The findings provide hotel managers with important insights and implications in terms of target segmentation, product development, and marketing communication strategy.
Consumer Evaluation of a Vertical Brand Extension in the Lodging Industry: Relationships among Brand Trust, Band Loyalty, Brand Distance, and Brand Extension
Lim, Yu Mi (Virginia Tech, 2013-04-24)
Vertical brand extensions have been used as popular strategies in the lodging industry. Research on brand extension that is related with brand trust and brand loyalty has been useful in making brand extensions successful. However, previous research focused on aggregated relationships among brand trust, brand loyalty, and brand extension. In addition, it has been found that quality and price distance from a core brand of the brand extension has an impact on the success of the brand extension. Therefore, this dissertation proposes a theoretical model with six hypotheses investigating relationships among brand trust, brand loyalty and brand extension simultaneously. Further, the impact of distance from a core brand (brand distance) on the brand extension was examined. Data was collected using an online panel. A final sample of 396 was used for the data analysis. Structural equation modeling (SEM), a Chi-square difference test, and independent t-tests were utilized to test the hypotheses. The data was randomly split in two. One half of the dataset was used to test a measurement model and the other half of the dataset was used to test a structural equation model. The findings suggested there were positive relationships between brand trust and brand loyalty, brand trust and brand extension, and brand loyalty and brand extension. Furthermore, it was found that brand distance plays a significant role not only on brand extension, but also on the relationship between brand trust and brand extension and the relationship between brand loyalty and brand extension. This study contributes to vertical brand extension literature by providing a theoretical model by which simultaneous relationships among brand trust, brand loyalty and brand extension were investigated with a moderating factor: brand distance. The findings of this dissertation have important managerial implications for lodging industry brand managers.
Consumer satisfaction and dissatisfaction of upscale restaurant dining: a two dimensional approach
Sun, Lou-Hon (Virginia Tech, 1994)
Dining out is one of the most popular leisure activities in developed countries. A review of the studies on consumer satisfaction and dissatisfaction (CS/D) in restaurant dining indicates that the majority of restaurant management literature deals with the product/service dimension of restaurant dining and that the leisure dimension of restaurant dining has not been explored. This study was approached with a desire to combine the knowledge from leisure, tourism, marketing, and service management in order to add to the body of knowledge in restaurant management. An analysis of an empirical test of the satisfaction disconfirmation model in an upscale restaurant was conducted. The emphasis was on the impact of perceived product/service and leisure disconfirmations on CS/D with upscale restaurant dining. Initially, thirteen product/service attributes were identified through in-depth literature review and consequently nine leisure attributes were adapted from Beard and Ragheb's leisure motivation scale (1983). A self-administered questionnaire was given to 443 customers in an upscale restaurant and 217 questionnaires were returned by mail. It was found that respondents had significantly higher perceived product/service disconfirmation than perceived leisure disconfirmation. Five factors were identified by factor analysis of the 22 attributes. The results of multiple regression analysis indicated that all the 13 product/service attributes which separated into three factors--food and beverage (F&B), price/quantity, and physical/service--had significant impacts on consumer satisfaction. The nine leisure attributes were identified as two factors--factor leisure one and factor leisure two. Factor leisure one was found to have no significant impact on CS/D. Factor leisure two which includes discover new things, avoid the hustle & bustle of daily activities, and interact with others, was found to relate significantly to consumer satisfaction. Among the four significant factors, F&B had the highest effect on consumer satisfaction with upscale restaurant dining followed by price/quantity. Compared with the physical/service factor, factor leisure two had a slightly higher effect on consumer satisfaction for upscale restaurant dining.
Creating and Validating a Measure of Customer Equity in Hospitality Businesses: Linking Shareholder Value With Return on Marketing
Hyun, Sunghyup Sean (Virginia Tech, 2009-07-16)
Understanding the contribution of marketing to the shareholder value of a company has been a major challenge for marketing research. The purpose of this dissertation was creating and validating an attitudinal measure of customer equity in hospitality businesses, thus providing a link between return on marketing and the shareholder value of a company. The theoretical background of the customer equity construct was examined, and then systematic scale development processes were initiated. The results produced two concise scales: (1) 17 items that represent the six dimensions of customer equity in the restaurant industry and (2) 19 items that represent the six dimensions of customer equity in the hotel industry. Six dimensions of customer equity achieved strong convergent validity, discriminant validity, and internal consistency, indicating unidimensionality of the constructs. To further validate the newly developed scale, criterion validity was checked in correlation with six criterion measures using data collected from 590 hospitality industry consumers. The results demonstrate that customer equity closely reflects the shareholder value of a company. Also, it was found that value equity, brand equity, relationship equity, and service quality are significantly and positively correlated with overall customer equity of a company. In conclusion, customer equity represents the long-term value of a company, and reflects shareholder value of the company, thus providing a link with return on marketing investments. Theoretical and managerial implications are discussed.
Customer Perceptions of Restaurant Cleanliness: A Cross Cultural Study
Yoo, Seung Ah (Virginia Tech, 2012-07-09)
What is a clean restaurant in customers' viewpoints? Restaurant cleanliness is considered one of the most significant conditions when customers evaluate overall restaurant quality or decide their levels of satisfaction. However, there have been few studies of perceptions of restaurant cleanliness in customers' eyes. Previous studies were found to use inconsistent concepts of restaurant cleanliness when evaluating restaurant cleanliness. For example, some measurement scale of restaurant quality or customer satisfaction includes only items related to a restaurant's interior appearance to measure the restaurant cleanliness. Some researchers have also included items related to server's appearance. In other studies, overall images of a restaurant were used to evaluate its cleanliness. This study attempts to investigate the customers' perceptions of restaurant cleanliness. Understanding what customers consider when they evaluate a restaurant's cleanliness can be beneficial for hospitality managers who can use the information to increase their restaurant's quality and to satisfy their customers. In addition, this study was conducted with two different cultural groups of customers: Westerners and Asians. Understanding how different cultures perceive restaurant cleanliness can help hospitality managers who plan to expand their business in the global market. The results of this study indicated that the items of restroom personal hygiene, restroom appearance and server behavior all have a positive relationship with customers' restaurant quality evaluations. The level of importance of restaurant cleanliness dimensions was found to be similar between the Western and Asian samples. The server's behavior, restroom appearance and signage were found to be the most important dimensions for both groups. However, restroom personal hygiene was found to be the only dimension ranked differently by the two groups in the study. Westerners weighed the restroom personal hygiene as more important than did Asian respondents. Asian groups were found to have higher expectations for overall restaurant cleanliness dimensions than Western groups.

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Browsing Feiertag Hospitality Academy-to-Industry Research by Department "Hospitality and Tourism Management"

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