What do Chinese consumers want? A value framework for luxury hotels in China

2018 ◽  
Vol 30 (4) ◽  
pp. 2037-2055 ◽  
Author(s):  
Ben Wu ◽  
Wan Yang

Purpose In the past decade, the luxury hotel industry in China has experienced rapid growth. To date, few scholars have investigated what consumers value about their experiences in luxury hotels generally, let alone specifically in the Chinese context. As a result, little is known about what Chinese consumers value in luxury hotel services. To bridge this gap, this paper aims to (1) develop a five-factor luxury hotel value framework from a value co-creation perspective; and (2) assess the relationship between these value dimensions and Chinese consumers’ intentions to stay in luxury hotels. Design/methodology/approach In total, 492 Chinese luxury hotels consumers participated in the study. A confirmatory factor analysis was used to validate the proposed measurement model, and a hierarchical linear regression was used to test the relationship between luxury hotel value and purchase intentions. Findings The authors assessed five dimensions of luxury hotel value in the current study: utilitarian value, symbolic value, hedonic value, relational value and financial value. The regression results indicate that for Chinese luxury consumers, hedonic value is the most important predictor of luxury hotel purchase intentions, followed by financial value and utilitarian value. Interestingly, symbolic value and relational value do not significantly influence Chinese consumers’ luxury hotel purchase intentions. Practical implications Luxury hoteliers in China can use the value framework when making decisions about market segmentation and brand positioning and to gain a deeper understanding of what motivates target consumers’ purchase intentions. They can also use such knowledge to tailor their product offerings to the preferences of target consumers. Originality/value The current study is the first empirical test of a luxury hotel value framework from a value co-creation perspective in the Chinese market. Taking Chinese luxury consumers’ unique characteristics into consideration, the authors further investigate the relationships between various dimensions of luxury hotel value and Chinese consumers’ purchase intentions.

2020 ◽  
Vol 32 (8) ◽  
pp. 1823-1841 ◽  
Author(s):  
Matthew Tingchi Liu ◽  
Yongdan Liu ◽  
Ziying Mo

PurposeThis research extends the theory of planned behaviour (TPB) and aims to study the underlying factors that influence Chinese consumers' purchase intentions towards green products. The conceptual model encompasses four elements (subjective norms, perceived behaviour control, moral norms and attitude) and one consumer response (purchase intention).Design/methodology/approachThe current research employs a questionnaire survey and two experiments. In Study 1, the hypotheses were tested using structural equation modelling with 485 consumers in China. Study 2 employed a single-factor, two-condition (morally engaged vs control), between-subject design.FindingsThe findings reveal that the morally extended TPB framework is more applicable in predicting Chinese consumers' green purchase intentions than the original TPB model. Attitude plays the most significant role in predicting purchase intentions, and moral norms prove to be a mediator of the relationship between the original construct of subjective norms and purchase intentions. The findings further revealed that moral norms comprise the underlying mechanism of the relationship between subjective norms and attitude.Originality/valueThis study therefore expands the TPB theory by including moral norms. Moreover, it contributes to the literature by clarifying the direct, indirect and total effects of each TPB element on the purchase intentions towards green products. Finally, managerial implications are given.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seunghwan Lee ◽  
Dae-Young Kim

Purpose This study aims to examine the brand tourism effect observed in luxury hotels. The study assumed that when loyal customers of luxury hotels perceive two different types of non-loyal customers, loyal customers’ perceptions might influence their behavioral intention. In addition, two emotions (i.e. anger and pride) might mediate the relationship between perceptions and behavioral intention. Design/methodology/approach This study used a scenario-based experimental design. Data from 1,013 responses were analyzed using partial least squares-structural equation modeling. Findings The study reveals that when loyal customers view brand tourists, infringement has a positive influence on switching intention, and likability positively effects brand loyalty. This study indicated that loyal customers perceive brand immigrants negatively, whereas brand tourists are comparably positively perceived by loyal customers. Only pride mediates these two relationships, respectively. Originality/value The study confirmed the brand tourism effect in luxury hotels by indicating a clearer relation between perception, emotion and behavioral intention. The theoretical implications could suggest insightful guidelines for future studies regarding loyalty in luxury hotels.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michel Laroche ◽  
Rong Li ◽  
Marie-Odile Richard ◽  
Muxin Shao

Purpose This study aims to investigate how consumers respond to global brands adapting to local elements. Specifically, this study identified three factors (i.e., cultural compatibility, cultural elements authenticity and cultural pride) affecting the purchase intentions (PIs) toward global brands using Chinese elements among Chinese consumers in China and Chinese immigrants in North America. Another aim is to examine the moderating role of acculturation in the relationship between cultural pride and PIs among Chinese immigrants. Design/methodology/approach Three studies were conducted to test the hypotheses in China and North America. Confirmatory factor analysis was used to confirm the factor structure. Hierarchical regression was used to test the main effects and moderated regression analysis was used to test the moderation effect. Findings Results show that cultural compatibility, cultural elements authenticity (CEA) and cultural pride positively affect the PIs toward global brands with Chinese elements for both Chinese consumers and Chinese immigrants. Further, among Chinese immigrants, acculturation moderates the relationship between cultural pride and PIs. Originality/value This study explored the factors influencing the PIs toward global brands using Chinese elements, filling a research gap. To the best of the authors’ knowledge, this study is the first to examine how perceived CEA affects consumers’ PIs toward global brands with Chinese elements. Further, the findings have implications for global brands that want to target Chinese consumers and Chinese immigrants in overseas markets.


2019 ◽  
Vol 31 (3) ◽  
pp. 670-690 ◽  
Author(s):  
Muhammad Kashif Javed ◽  
Ma Degong ◽  
Talat Qadeer

Purpose Most business-related studies on ethics focus on consumers in developed western economies but ignore developing economies. Therefore, to fill this void in the literature and address the concerns of prior studies, the purpose of this paper is to examine the ethical perceptions of Chinese consumers as an example of effective and efficient management of company/brand strategies in an economy experiencing rapid socioeconomic growth. Design/methodology/approach This study examines 328 Chinese consumers’ purchase intentions based on their ethical perceptions toward Apple and P&G through mediating (i.e. consumer–corporate identification (CCI) and brand trust) and moderating (i.e. consumer gender, age, education and residence) effects. Structural equation modeling is used to analyze the constructs and overall model. Findings The ethical perceptions of consumers translate into purchase intentions, both at the corporate and product brand levels. Similarly, a significant direct relationship between CCI and brand trust reveals that corporate-level ethical identification is a trivial matter to customers, although these perceptions do apply to product brands under a corporate umbrella. Furthermore, to identify target groups of Chinese consumers who are receptive to ethical appeals, moderating variables were found to be useful. Originality/value The results confirm that the mediating role of CCI is more influential in the context of Chinese consumers’ ethical perceptions, followed by brand trust. In relation to demographics, ethical perceptions affect CCI and brand trust more positively in females and highly educated consumers in China. Similarly, the relationship between consumers’ ethical perception and their trust in brand is revealed more influential in urban residents than they do in rural. This broadens the applications and contexts of this research model. The results provide managerial guidance on enhancing potential ethical perceptions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xun Zhang ◽  
Biao Xu ◽  
Jun Wu

Purpose This study aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese business-to-business (B2B) context. Design/methodology/approach Renqing in China has played an important role in business relationships and has been receiving increased attention in both practice and theory. However, little is known about whether it can influence purchase intentions in a rational B2B condition. This research aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese B2B context. Based on a survey of 1,010 industry buyers from 468 Chinese downstream buyer companies, the empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of long-term orientation (LTO) for increasing purchase intentions. In addition, this study also finds that product involvement (PI) has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. The results highlight several implications for B2B companies that sell products to Chinese enterprises. Findings The empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of LTO for increasing purchase intentions. In addition, this study also finds that PI has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. Originality/value First of all, by answering the research question, this study shows that renqing has a positive effect on purchase intentions in Chinese B2B context. Second, this study elucidates the influence mechanism of renqing on purchase intention and identifies the mediating effect of LTO and the moderating effect of PI.


2011 ◽  
Vol 2 (2) ◽  
pp. 899
Author(s):  
Rita Rita

Brand makes easier consumer to take efficiently purchase decision about the product. Consumer choices product or brand are driven by utilitarian and hedonic considerations. The main purpose of this study was to examine the effect of perceived symbolic value and utilitarian value on consumer attitudes toward brand and purchase intentions. The respondents in this study are university students in Yogyakarta. Sampling technique used was purposive sampling. There are only 235 respondents among 400 questioners whom can be used as samples. Validity and reliability testing were conducted in order to figure out the validity rate and data reliability. The data were analyzed by using Regression Analysis. The results provide support for seven of the eight hypothesized. The results provide that symbolic value and utilitarian value as two different value but related. The results show that symbolic value and utilitarian value have a positive impact on consumer attitudes toward brand and purchase intentions. 


2018 ◽  
Vol 36 (4) ◽  
pp. 764-783 ◽  
Author(s):  
Che-Hui Lien ◽  
Jyh-Jeng Wu ◽  
Maxwell K. Hsu ◽  
Stephen W. Wang

PurposeThe purpose of this paper is to examine the mediating effect of functional value and symbolic value between positive moods and word-of-mouth (WOM) referrals in the context of Taiwan’s banking industry. In addition, this study investigates the moderating effect of relational benefits on the relationship between perceived value and WOM.Design/methodology/approachThe research model was tested using data collected from customers (n=362) of the top 10 domestic banks in Taiwan. Structure equation modeling was employed to test and validate the conceptual model.FindingsPositive moods are found to be an important predictor of functional value, symbolic value and WOM in this banking service study. Four types of relational benefits are identified including social, special treatment, confidence and face. Note that two distinct segments of bank customers are identified in terms of relational benefits: those who appreciate face benefits (n1=169), and those who appreciate general relational benefits (n2=193). The findings reveal the existence of partial mediation between a banking customer’s mood and WOM through functional value and symbolic value in the overall sample (n=362). However, it was found that functional value partially mediates the influence of positive moods on WOM among respondents in the “general relational benefits” segment only. That is, relational benefits are found to moderate the relationship between functional value and WOM.Originality/valueThis study expands the existing body of knowledge on customers’ perceptions of value by differentiating types of value perceptions.


2020 ◽  
Vol 32 (5) ◽  
pp. 1813-1835
Author(s):  
Béchir Ben Lahouel ◽  
Nathalie Montargot

Purpose This purpose of this study was to explore two key issues in experiential marketing from an organizational perspective: the management of “strategic experiential modules” and the management of “service encounters” specific to a memorable experience for children in urban luxury hotels. Design/methodology/approach An integrated model combining managerial and practice-oriented frameworks was used to study how luxury hotel managers design and create memorable experiences for children. The study took a qualitative approach in collecting in-depth data and interviewed 35 managers of five-star luxury hotels in Paris. The data were processed using the Alceste software, an automated lexical program that analyzed the co-occurrence of words and sentences. Findings With regard to the integrated model, the analysis of the interviews distinguished four main dimensions, which accounted for more than 84 per cent of the original textual data. Three dimensions, related to emotional-sensorial-physical experiential modules, described how managers strategically managed the child experience and journey while at their hotel. A fourth dimension was also identified in relation to the upstream of the service encounter. The findings highlighted a significant gap in how hotel managers were managing the experiences of children under 12 years of age and that further incorporation of various touchpoints is needed to improve the management of the service design. Research limitations/implications This study demonstrated the applicability of the proposed integrated model, which offers valuable marketing implications for luxury hotel managers. It is suggested that more research on the management of the child experience and journey is conducted in the future. Originality/value To the best of the researchers’ knowledge, this is the first empirical study to combine these two frameworks to study the management of the child experience and journey in the luxury hospitality sector.


2019 ◽  
Vol 10 (1) ◽  
pp. 107-120 ◽  
Author(s):  
Zaid Alrawadieh ◽  
Mithat Zeki Dincer

PurposeDrawing on a sample of 520 negative reviews posted on TripAdvisor against all five-star hotels operating in Petra, Jordan, the purpose of this paper is to evaluate the response of luxury hotels to negative online reviews by considering the Response Rate (RR), the Response Time (RT) and the Response Content (RC).Design/methodology/approachA deductive content analysis was used on hotels’ managerial responses. Based on the literature review, a four-construct scheme was identified to guide the analysis including Appreciation; Apology; Explanation; and Incentive. The managerial responses were carefully read and manually coded based on the four-construct scheme. The time between the review posting date and the date of the managerial response was also recorded. Luxury hotel managers were also surveyed to obtain insights into their perceptions and practices with respect to online reputation management.FindingsThe findings call into question luxury hotels’ awareness of the harmful impact of negative online reviews. Specifically, the findings suggest that less than half of the negative reviews received a managerial response, and that more than half of these were standardized and did not refer to the issues raised in the reviews. The low response rate coupled with the hotel managers’ consensus on the importance of answering all online reviews indicates inconsistency between hotel managers’ perceptions and practices with regard to online reputation management.Originality/valueThe paper adds to the ongoing debate on reputation management in the hospitality industry by considering the managerial response to negative online reviews. The paper discusses several managerial implications for hotel managers as well as avenues for future research.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeoung Yul Lee ◽  
Joong In Kim ◽  
Alfredo Jiménez ◽  
Alessandro Biraglia

PurposeThis study examines the impact of situational and stable animosities on quality evaluation and purchase intention while also testing the moderating effects of within- and cross-country cultural distance. It focuses on the case of the US THAAD missile defense system deployment in South Korea (hereafter, Korea) and investigates how the resulting Chinese consumers' animosity affects their quality evaluation of, and purchase intention toward, Korean cosmetics.Design/methodology/approachThis study utilizes a quantitative approach based on a survey and structural equation modeling. The sample comprises 376 Chinese consumers from 19 Chinese regions.FindingsThe results indicate that both stable and situational animosities are negatively associated with purchase intention toward Korean cosmetics. However, their effects on quality evaluation are different. While stable animosity is negatively related to product quality evaluation, situational animosity has no such negative association. Finally, the cultural distance between Chinese regions and Korea strengthens the negative relationship between stable and situational animosities and purchase intention.Research limitations/implicationsThe study contributes by better unraveling the effects of stable and situational animosities on perceived product quality. The empirical context is unique because it allows the authors to investigate the relationship between Chinese antagonism toward the THAAD deployment in Korea and Chinese consumers' stable and situational animosities in terms of their quality evaluation of, and purchase intention toward, imported Korean cosmetics. Hence, this study contributes to the literature on consumer animosity by empirically testing the moderating effect of within- and cross-country cultural distance on the relationship between stable and situational animosities and purchase intention.Practical implicationsThe study has relevant practical implications, notably for Korean exporters' marketing management and within- and cross-cultural management. The results suggest that countermeasures are needed because Chinese consumers' stable and situational animosities are negatively related to their purchase intention toward Korean cosmetics. Moreover, the findings provide the insight that when foreign firms export culture-sensitive products to a large, multicultural country, their managers should pay attention to within- and cross-cultural differences simultaneously.Originality/valuePrevious studies have shown that the effects of animosity on product evaluation and purchase intention differ depending on the animosity dimension, product type, country and the situation causing animosity, among others. However, the existing literature on animosity has neglected the reality that within-cultural differences in a single large emerging market are relevant to explaining the concept of animosity and its effect on the purchase intention toward culture-sensitive products. Furthermore, none of the animosity studies have touched on the important moderating role of within- and cross-cultural differences between a large and multicultural importing country and a brand's home country in this manner. Therefore, the study fills this gap by empirically examining whether different moderating effects of stable and situational animosities exist for a specific conflict situation caused by a military issue and investigates the causes of these different effects.


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