Exploring the Development of Customer Loyalty in the Hotel Industry

by

Thaib Alharethi

Submitted for the Degree of Doctor of Philosophy

School of Hospitality and Tourism Management

Faculty of Arts and Social Sciences

Supervisors:

Prof. Andrew Lockwood

Dr. Christine Lundberg

© Thaib Alharethi 2019

DECLARATION

This thesis and the work to which it refers are the results of my own efforts. Any ideas, data,

images or text resulting from the work of others (whether published or unpublished) are fully

identified as such within the work and attributed to their originator in the text, bibliography or

in footnotes. This thesis has not been submitted in whole or in part for any other academic

degree or professional qualification. I agree that the University has the right to submit my

work to the plagiarism detection service TurnitinUK for originality checks. Whether or not

drafts have been so-assessed, the University reserves the right to require an electronic version

of the final document (as submitted) for assessment as above.

Signature: ______________

Date: 03/10/2019

ABSTRACT

In fierce competitive markets, service industries have moved toward paying better attention

and emphasis than before to customer loyalty rather than concentrating on acquiring and

1

attracting new customers. (Shoemaker and Lewis, 1999). Kandampully et al. (2018) have

highlighted a survey by Gartner (2014) which stated that 89 per cent of hospitality businesses

“expect to compete primarily on the basis of customer experience, and it is now one of the

key strategies adopted by hospitality firms” (p.22). Customer experience as this research

proposed is a key element that leads to customer loyalty. This research aimed to explore the

complexity of customer loyalty in the hotel industry and it has looked at this topic from

different points of view. This research aimed to understand the process of the development of

customer loyalty. In so doing, the research investigated the differences that exist between

loyal customers at different stages of loyalty in terms of their actions, commitment,

attachment and sense of belonging to their preferred business. In order to be able to examine

these different types of loyalty, the research also took into consideration the inputs that

businesses have to offer to their customers and their effects on the level and strength of

customer loyalty, using factors such as includes customer engagement, personalization and

value creation as well as recognition and appreciation.

This research has studied the concept of loyalty and the complexity of its meaning by

investigating the current literature, applications and existing practices. It has taken an

approach that looks beyond behavioral loyalty and expands it into all aspects of customer-

business relationships. After considerable investigation and thought, the researcher arrived at

a conceptual model proposing the idea of the customer loyalty stages and transitions. Then,

the researcher developed a semi-structured interview protocol to explore the possibility of the

workability and feasibility of the proposed conceptual model. This process gave the

researcher the confidence and trust needed in the proposed conceptual model. Thereafter, the

researcher investigated the literature once more in order to develop the eight scales needed

for the main study instrument. The researcher developed items for eight scales with some

items drawn from the literature and others added from the preliminary study interviews. The

researcher used Q-sort method and employed 40 participants to validate the items for these

chosen scales. This method resulted in purified and trusted scales that the researcher had the

confidence to use in the main study instrument. Following this, the researcher conducted a

pilot study that included experts from academia and industry to establish the validity of the

survey instrument. After launching the main instrument and receiving survey responses, the

researchers used the different types of analysis that are explained in detail in the analysis of

finding chapter. This research employed multiple analysis approaches at different stages such

as exploratory factor analysis, reliability test, T-test and ANOVA, regression analysis, cluster

2

analysis and others. These analysis approaches helped to confirm the research measurements,

the scales for the four loyalty stages and four loyalty transitions, and verified and validated

the proposed conceptual model as well as confirming all the research hypotheses.

This study has five significant theoretical and methodological contributions. First, it identifies

four different stages of loyalty, with behavioral loyalty stage being the first but not

necessarily the most important. Second, we examined the practices and inputs that hotels can

offer to encourage loyalty and the different inputs for each of the four stages of loyalty,

named as loyalty transitions, and identified the direct link and relationship between loyalty

stage stages and its transition. Third, eight scales have been developed, tested and validated

and considered as methodological, theoretical and practical contributions. Fourth, this study

has also used different types of analysis methods such as q-sort and cluster analysis alongside

with other methods and, fifth, confirmation of the research model that proposed the idea of

the customer loyalty development and movement from one loyalty stage to another.

In addition to the motivating theoretical and methodological contributions this research has

added, multiple exciting outcomes would add value to the hospitality industry. Examples of

these are that this research has provided a holistic picture of the customer loyalty journey in

the hotel industry and the research model will enable hotel managers and employees to have a

better understanding of their current customer. Furthermore, it has developed and shaped

reliable and valuable measurements and scales for customer loyalty stages and transitions,

which will support human resource departments, relationship marketing strategists and

planners to please, satisfy and recognize their customer. Additionally, this research has

stressed on the importance and effects of human interaction and relationship on customer

loyalty development. Finally, this research has found physical wonders play an introductory

level in the customer loyalty journey, where the relationship and customer experiences played

significant roles in the development of customer loyalty, which is the goal and objective each

business would want to achieve.

ACKNOWLEDGMENTS

3

During this incredible journey, I have experienced some life-changing events, which would

not have occurred without the support, kindness and encouragement I was provided by my

great supervisors. Professor Andrew Lockwood, you are one to whom I will be forever

grateful. Your kindness, knowledge and experience have shaped my PhD journey and given

me invaluable skills and knowledge. Dr. Christine Lundberg, thank you also for your genuine

support, guidance and contributions which I value and appreciate.

Thanks to my Country Saudi Arabia for supporting me throughout my studies. Thanks to my

sponsor King Abdulaziz University, Tourism Faculty. Saudi Culture Bureau in London.

Thanks to Surrey University for providing me with a friendly and supportive environment.

Thanks to the School of hospitality and tourism and all the wonderful colleagues and faculty

members, and thanks also to all the people who helped during my data collection stage. So

many people have helped and motivated me, and I do not want to mention names because it is

a very long list.

I want to express my sincere love and gratitude to my family for their endless love, support

and encouragement. We have been through challenging events and circumstances these last

three years. We have managed to transform these adverse events into positives ones and we

have overcome a lot together. I will never be able to thank you enough, my wonderful wife,

beautiful daughters, son and my loving and supportive parents and brothers.

4

Table of ContentsChapter 1: Introduction......................................................................................................................12

1.1 Loyalty in the hospitality industry.............................................................................................12

1.2 The nature of hospitality............................................................................................................13

1.3 Hospitality businesses in the Middle East..................................................................................17

1.4 The Hospitality Industry in Saudi Arabia..................................................................................18

1.5 Arab Relationships and Loyalty.................................................................................................22

1.6 Research questions and objectives.............................................................................................23

1.7 Significance and Contribution...................................................................................................24

1.8 Structure of the research............................................................................................................26

Chapter 2: Reviewing Loyalty............................................................................................................29

2.1 What do we understand by loyalty?...........................................................................................29

2.2 Literature on loyalty as repeat behaviour...................................................................................33

2.3 Loyalty as emotional attachment...............................................................................................34

2.4 Loyalty as affective commitment...............................................................................................37

2.5 Loyalty as belonging..................................................................................................................39

2.6 Loyalty as a process of development over time.........................................................................43

Chapter 3: Loyalty as something companies do (Transitions)........................................................45

3.1 Loyalty schemes........................................................................................................................45

3.2 What companies do to attract and acquire.................................................................................46

3.3 How do companies promote customer engagement?.................................................................49

3.4 How do companies create value?...............................................................................................51

3.5 What do companies do to recognize and appreciate their customer?.........................................54

3.6 Build-up of conceptual model and relationships........................................................................57

3.7 Development of initial hypotheses.............................................................................................58

3.8 Summary...................................................................................................................................62

Chapter 4: Methodology....................................................................................................................63

4.1 Introduction...............................................................................................................................63

4.2 Research Question, objectives and hypotheses..........................................................................63

4.3 Research philosophy..................................................................................................................64

4.4 Research Paradigm and Key Research Philosophy....................................................................66

4.5 Research approach and method..................................................................................................68

4.6 Selecting the Research Philosophy............................................................................................70

4.7 Summary...................................................................................................................................71

Chapter 5: Methods.............................................................................................................................73

5

5.1 Introduction...............................................................................................................................73

5.2 Preliminary Study......................................................................................................................74

5.2.1 Purpose of the preliminary study:.........................................................................................745.2.2 The preliminary study design:..............................................................................................75

5.2.3 Sampling Strategy:................................................................................................................785.2.4 Sample Size and Selecting strategy......................................................................................79

5.2.5 Interview Location................................................................................................................805.2.6 Implementation.....................................................................................................................81

5.2.7 Discussion and Analysis.......................................................................................................815.2.8 Themes’ reliability and validity............................................................................................84

5.2.9 Preliminary Themes Identified.............................................................................................845.2.9 Preliminary Study Conclusion and Outcomes......................................................................94

5.3 Developing the Survey instrument.............................................................................................96

5.3.1 Scale and Item Development................................................................................................965.3.2 Study Domain of the Construct............................................................................................96

5.4 Item Generation.........................................................................................................................97

5.4.1 Content adequacy assessment via Q Sort Technique............................................................985.4.2 Q Sort Procedure...................................................................................................................99

5.4.3 Q Sort Results.....................................................................................................................102

5.5 Questionnaire Development.....................................................................................................107

5.5.1 Questionnaire Translation...................................................................................................111

5.5.2 Pre-testing...........................................................................................................................1125.5.3 Sampling Procedure............................................................................................................116

5.5.4 Questionnaire Administration.............................................................................................118

5.6 Research Ethics and Data Protection.......................................................................................120

5.7 Reliability and Validity of Data...............................................................................................121

5.8 Data Analysis Methods............................................................................................................122

5.8.1 Sample Characteristic Analysis..........................................................................................122

5.8.2 Exploratory Factor Analysis...............................................................................................1235.83 Reliability of the Scale.........................................................................................................123

5.8.4 Descriptive Analysis...........................................................................................................1245.8.5 Correlation Analysis...........................................................................................................124

5.8.6 T-test ANOVA....................................................................................................................1245.8.7 Regression Analysis............................................................................................................125

5.8.8 Cluster Analysis..................................................................................................................125Chapter 6: Analysis of Findings.......................................................................................................126

6.1 Introduction.............................................................................................................................126

6.2 Participants’ Characteristics.....................................................................................................127

6

6.2.1 Socio-demographic Characteristics....................................................................................1286.2.2 Gender.................................................................................................................................128

6.2.3 Marital Status......................................................................................................................1296.2.4 Age......................................................................................................................................130

6.2.5 Level of Education..............................................................................................................1316.2.6 Nationality..........................................................................................................................131

6.3 Participants’ Profile.................................................................................................................132

6.3.1 Types of Hotel....................................................................................................................1326.3.2 Length of Relationship........................................................................................................133

6.3.3 Number of Visits.................................................................................................................1346.3.4 Experience of Current/Last Stay.........................................................................................135

6.3.5 Purpose of Travel................................................................................................................135

6.4 Factor Analysis: Exploratory Factor Analysis.........................................................................136

6.4.2 Loyalty Transitions (EFA):.................................................................................................139

6.4.1 Loyalty stages constructs (EFA):........................................................................................143

6.5 Scale Reliabilities....................................................................................................................147

6.5.1 Loyalty Stages Scales:........................................................................................................148

6.1.2 Loyalty Transition Scales...................................................................................................152

6.6 Descriptive Analysis................................................................................................................157

6.7 Correlation Analysis................................................................................................................160

6.8 T-test Results...........................................................................................................................162

6.8.1 Gender:................................................................................................................................162

6.8.2 Marital Status:.....................................................................................................................1636.8.3 Types of Hotel:...................................................................................................................164

6.9 ANOVA Results......................................................................................................................165

6.9.1 Education Level:.................................................................................................................1666.9.2 Length of Relationship:......................................................................................................167

6.9.3 Number of Visits:................................................................................................................1696.10 Regression Analysis...................................................................................................................170

6.10.1 Introduction:......................................................................................................................1706.11 Assumptions.........................................................................................................................171

6.12 Hypothesis testing:.................................................................................................................174

6.12.1 Hypothesis 1.....................................................................................................................1746.12.2 Hypothesis 2.....................................................................................................................176

6.12.3 Hypothesis 3.....................................................................................................................1776.12.4 Hypothesis 4.....................................................................................................................179

6.13 Testing Mediation Hypotheses...............................................................................................181

6.13.1 Hypothesis 5.....................................................................................................................181

7

6.13.2 Hypothesis 6.....................................................................................................................1846.13.3 Hypothesis 7.....................................................................................................................187

6.13.4 Summary of Hypothesis Testing.......................................................................................191

6.14 Cluster Analysis.....................................................................................................................192

6.14.1 Cluster ANOVA Result:...................................................................................................194

6.14.2 Crosstabs Analysis............................................................................................................195

6.15 Conclusion.............................................................................................................................197

Chapter 7: Discussion and Conclusion............................................................................................199

7.1 Introduction.............................................................................................................................199

7.2 Review of the Study’s Findings...............................................................................................199

7.3 Discussion of the Study’s finding............................................................................................203

7.3.1 Exploring the Customer Loyalty Stages in the Hotel Industry:..........................................2057.3.2 Exploring the development of the customer loyalty stages................................................219

7.4 Loyalty Groups (Cluster Analysis)..........................................................................................223

7.5 Research Contribution Section................................................................................................225

7.5.1 Achieving the research objectives...............................................................................2257.5.2 Review of the study’s findings...........................................................................................226

7.6 Contributions of the research...................................................................................................230

7.6.1 Theoretical and Methodological Contributions..................................................................2317.6.2 Practical and Managerial Implications...............................................................................234

7.6.3 Limitations and future research..........................................................................................237References...........................................................................................................................................240

Appendices..........................................................................................................................................260

Appendix A Interview Protocol.....................................................................................................260

Appendix B Example of Interview Conducted..............................................................................264

Appendix C (First Q-sort Study Result)........................................................................................270

Appendix D (Second Q-sort Study Result)....................................................................................275

Appendix E Items Randomized in Excel.......................................................................................280

Appendix F Survey Arabic Version...............................................................................................282

Appendix G Survey Final Version.................................................................................................286

Appendix H Correlation................................................................................................................290

Appendix I K-means cluster outputs..............................................................................................293

Appendix J Cluster Number of Case Crosstabulation....................................................................293

8

List of Tables

Table 1.1: Approaches to Hospitality..................................................................................................14Table 2.1: Summary of the loyalty concept, antecedents and outcome................................................31Table 2.2: Summary of Behavioural Loyalty.......................................................................................34Table 2.3: Summary of Emotional Attachment...................................................................................37Table 2.4: Summary of Affective Commitment...................................................................................39Table 2.5: Summary of Belonging.......................................................................................................42Table 3.1: Summary of Attracting and Acquiring................................................................................48Table 3.2: Summary of Engagement...................................................................................................50Table 3.3: Summary of Personalization and Value Creation...............................................................53Table 3.4: Summary of Firm Appreciation and Recognition...............................................................56Table 4.1 Types of Research Assumptions.........................................................................................64Table 4.2 Elements of Research Assumptions.....................................................................................65Table 4.3 Research Paradigm..............................................................................................................67Table 4.4 Research Approaches...........................................................................................................69Table 5.1 Method Process...................................................................................................................74Table 5.2 Typologies of interview questions.......................................................................................76Table 5.3 Example of Interview Questions..........................................................................................76Table 5.4 Participants Details..............................................................................................................80Table 5.5 Phases of Thematic Analysis...............................................................................................83Table 5.6 Theme 1 Attracting& Acquiring..........................................................................................84Table 5.7 Theme 2 Behavioural Loyalty.............................................................................................86Table 5.8 Theme 3 Engagement..........................................................................................................87Table 5.9 Theme 4 Emotional Attachment..........................................................................................88Table 5.10 Theme 5 Value Creation....................................................................................................89Table 5.11 Theme 6 Affective Commitment.......................................................................................90Table 5.12 Theme 7 Recognition and Appreciation.............................................................................92Table 5.13 Theme 8 Belonging............................................................................................................93Table 5.14 Outcomes from the Preliminary Study...............................................................................95Table 5.15: Feedback.........................................................................................................................114Table 5.16: Sampling Techniques.....................................................................................................116Table 5.17: Sample Size Requirements.............................................................................................118Table 5.18: Reliability.......................................................................................................................122Table 6.1 Data Analysis Process........................................................................................................126Table 6.2: Age Group........................................................................................................................130Table 6.3: Participants’ Nationality...................................................................................................132Table 6.4: Participants’ Purpose of Travel.........................................................................................136Table 6.5 Sample Size Requirements................................................................................................137Table 6.6 Guidelines for the Kaiser-Meyer-Olkin Test......................................................................138Table 6.7 Factor Analysis Assumption..............................................................................................139Table 6.8 Pattern Matrix for Loyalty Transitions..............................................................................141Table 6.9 Pattern Matrix for All Loyalty Stages................................................................................145Table 6.10 Reliability Level..............................................................................................................148Table 6.11 Behavioural Loyalty Scale Reliability.............................................................................149Table 6.12 Emotional Attachment Scale Reliability..........................................................................150

9

Table 6.13 Affective Commitment Scale Reliability.........................................................................151Table 6.14 Belonging CCB Scale Reliability....................................................................................152Table 6.15 Attract and Acquire Scale Reliability..............................................................................153Table 6.16 Customer Engagement Scale Reliability..........................................................................154Table 6.17 Personalization and Value Creation Scale Reliability......................................................155Table 6.18 Recognition and Appreciation Scale Reliability..............................................................156Table 6.19 Descriptive Analysis........................................................................................................157Table 6.20 Correlation Analysis........................................................................................................160Table 6.21 Gender T-test...................................................................................................................163Table 6.22 Marital Status T-test........................................................................................................164Table 6.23 Types of Hotel T-test.......................................................................................................165Table 6.24 Education Level ANOVA Test........................................................................................166Table 6.25 Length of Relationship ANOVA Test..............................................................................168Table 6.26 Number of Visit ANOVA Test........................................................................................169Table 6.27 Regression Assumptions Checked:..................................................................................175Table 6.28 Regression Model Statistics: Dependent Variable Behavioural Loyalty..........................175Table 6.29 Regression Assumptions Checked:..................................................................................176Table 6.30 Regression Model Statistics: Dependent Variable Emotional Attachment.......................177Table 6.31 Regression Assumptions Checked:..................................................................................178Table 6.32 Regression Model Statistics: Dependent Variable Affective Commitment......................179Table 6.33 Regression Assumptions Checked:..................................................................................180Table 6.34 Regression Model Statistics: Dependent Variable Belonging CCB.................................180Table 6.35 Regression Assumptions for H 5.....................................................................................182Table 6.36 Regression Model Statistics: Step 1, 2 and 3...................................................................183Table 6.37 Regression Model Statistics: Step 4.................................................................................184Table 6.38 Regression Assumptions for H 6.....................................................................................185Table 6.39 Regression Model Statistics: Step 1, 2 and 3...................................................................186Table 6.40 Regression Model Statistics: Step 4.................................................................................187Table 6.41 Regression Assumptions for H 7.....................................................................................188Table 6.42 Regression Model Statistics: Step 1, 2 and 3...................................................................189Table 6.43 Regression Model Statistics: Step 4.................................................................................190Table 6.44 Summary of Hypothesis Testing......................................................................................191Table 6.45 Final Cluster Centres.......................................................................................................193Table 6.46 Distances between Final Cluster Centres.........................................................................194Table 6.47 Number of Cases in each Cluster.....................................................................................194Table 6.48 Loyalty stages In Cluster Analysis...................................................................................195Table 6.49 Cross Tabulation Summary..............................................................................................196Table 7.1 Links between Stages and Transitions...............................................................................227

10

List of Figures

Figure 3-1: Customer Loyalty Development.......................................................................................58Figure 3-2: Hypotheses for the Conceptual Model..............................................................................61Figure 4-1: Deductive and Inductive...................................................................................................69Figure 6-1: Participants’ Gender........................................................................................................128Figure 6-2: Participants’ Marital Status.............................................................................................129Figure 6-3: Participants’ Age Group..................................................................................................130Figure 6-4: Participants’ Level of Education.....................................................................................131Figure 6-5: Types of Hotel................................................................................................................132Figure 6-6: Length of Relationships..................................................................................................133Figure 6-7: Number of Visits.............................................................................................................134Figure 6-8: Participants Experience...................................................................................................135Figure 6-9 P-P Plot and Histogram H- 1............................................................................................174Figure 6-10 P-P Plot and Histogram H- 2..........................................................................................176Figure 6-11 P-P Plot and Histogram H-3...........................................................................................178Figure 6-12 P-P Plot and Histogram H- 4..........................................................................................179Figure 6-13 P-P Plot and Histogram H-5...........................................................................................182Figure 6-14 P-P Plot and Histogram H-6...........................................................................................185Figure 6-15 P-P Plot and Histogram H-7...........................................................................................188Figure 6-16 Final Cluster Centres......................................................................................................193Figure 7-1: Research Model..............................................................................................................203Figure 7-2: The Scale Development Journey.....................................................................................204Figure 7-3: Validated Research Model..............................................................................................230

11

Chapter 1: Introduction

1.1 Loyalty in the hospitality industryIn fiercely competitive markets, service industries have moved toward paying better attention

and emphasis than before to customer loyalty, rather than concentrating on acquiring and

attracting new customers (Shoemaker and Lewis, 1999). Klaus and Maklan, (2011) stated,

“superior customer experience has been acknowledged as key to gaining customer loyalty

(cited in Kandampully et al. 2018, p. 22). As customer experience is playing a critical role in

gaining customer loyalty in the hospitality industry, Kandampully et al. (2018) also

highlighted a survey by Gartner (2014) which stated that 89 per cent of hospitality businesses

“expect to compete primarily on the basis of customer experience, and it is now one of the

key strategies adopted by hospitality firms; leading firms such as Marriott, Hilton, Starbucks,

Disney and Starwood excel by creating a distinctive customer experience both offline and

online” (p. 22). This research aims to explore the meaning and state of customer loyalty and

to develop and test a coherent structure for the development of loyalty antecedents and

outcomes. Why is loyalty crucial for businesses? Loyalty can benefit the organization in

many ways, including creating improved profit by enhancing revenues and reducing the costs

associated with acquiring and attracting customers, and customer-price sensitivity (Reicheld

and Sasser, 1990).

Reichheld (1996) in his book, ‘The Loyalty Effect’, explains the benefits of loyalty comprises

of continued profit, decreased marketing costs, improved per-customer revenue growth,

reduced operating costs, increased referrals, increased price premiums, and competitive

advantage. He also explained the enticing of new customers often cost about five times more

than what it costs to keep current customers. Customer loyalty is an essential and vital key to

success in today’s competitive hotel industry (Mattila, 2006). Besides, customer loyalty is a

12

profitable method since, as a mature business, the hospitality sector needs to pursue market

share increases, instead of market-growth gains (Jarvis and Mayo, 1986).

In the hospitality business, researchers have stated that a little growth in loyal customers will

produce a substantial rise in profitability (Bowen and Shoemaker, 1998; Tepeci, 1999). For

hotels, loyalty has been characterised as “the likelihood of a customer’s returning to a hotel

and that person’s willingness to behave as a partner to the organization” (Shoemaker and

Lewis, 1999, p. 349). In the hotel loyalty literature, it is clear that service quality stands out as

an essential antecedent to loyalty, which may include quality staff, personalization, prompt

service, interaction quality, physical environment quality, and outcome quality (Clemes et al.

2011). Loyal customers will help promote a hotel. They will provide strong word-of-mouth

recommendations, voluntary business referrals, and references. Loyal customers increase

sales by purchasing a variety of the hotel's products and by buying more (Bown and Chen,

2001). This research intends to deliver a holistic picture of the customer loyalty, which will

include all aspects involved in the creation, antecedents, and development of loyalty.

1.2 The nature of hospitality

What is hospitality? It has been an interesting area for researchers’ debate, and it has

generated different and curious arguments and responses. Hospitality throughout history “has

been centred around security, physical comfort and psychological comfort (provided) to

others by a host” (Christian in Nailon, 1982 as cited in Hepple et al. 1990 p. 306). Cassee

(1983) defined hospitality as a combination of tangible and intangible elements that includes

food, drink, rooms, ambience, physical settings and employees behaviours and stressed the

idea that hospitality has moved beyond the classical ideas that only include food, beverage,

and beds. Cassee and Reuland (1983) have slightly reformed the understanding and meaning

of hospitality and stated that hospitality is a mixture of food, beverage, and/or

accommodation, a physical setting, and the behaviour and attitude of service providers.

13

Lockwood and Jones (1984) stated that hospitality is the people business that offers a sense

of security, physical and psychological comfort as incentives. Tideman (1983) has expanded

by including customer satisfaction with the service provided, such as meeting customer

expectations and desires and offering acceptable prices that match the value a customer

receives from the product and service.

Heppe et al. (1990) reviewed the hospitality concept and different definitions, and they have

concluded that it:

1- hospitality is conferred on some guest, by some host

2- the transmission of hospitality is interactive

3- hospitality comprises a blend of both tangible and intangible factors;

4- the host provides for the guest’s security, the guest’s psychological comfort and the

guest’s physiological comfort (p. 308)

More recently, Brotherton (1999) defined hospitality as

“A contemporaneous human exchange, which is voluntarily entered into, and

designed to enhance the mutual well-being of the parties concerned through the

provision of accommodation and food or drink”.

(Brotherton, 1999 p.168).

In 2009, Abraham and Amir investigated the nature of hospitality and identified different

approaches to hospitality. They have highlighted four main approaches describing the

meaning and nature of hospitality. These four are listed in the table 1.1 below:

Table 1.1: Approaches to Hospitality

Approaches to Hospitality

Guiding Principles References

Professionalism

-Hospitality is an industry providing professional services to customers who demand them.

Baum (2007); Pizam (2007a); Reichel and Pizam

14

-The hospitality industry is a platform for sellers-buyers relations, based on economic exchange- Sought professional status for the industry and its employees, and call for raising the standing of employment in the industry -Investigating the skills, attitudes and personality traits required from professional hospitality employees

(1984);Sheldon (1989); Slattery (2002); Tesone and Ricci (2006)

Hospitableness -Focusing on the social and cultural meanings of hospitality, rather than merely the commercial one - The hospitality industry is a platform for hosts-guests relations, aimed to ensure the wellbeing and comfort of the latter -Emphasising the need to secure the "spirit of hospitality" -Viewing hospitable behaviour as a virtue: the desire to ensure the happiness of the guest, in order for him to feel genuinely valued and welcomed

Bell (2007);Brotherton, 2005; King, 1995; Lashley, 2008; Lashley and Morrison, 2000; Lynch, 2005; O'Connor, 2005;O'Gorman, Baxter and Scott, 2007; Telfer, 2000:

Hospitality as an Experience

-Contemporary hospitality customers are essentially driven by a quest for memorable and exciting experiences -Call for the integration of theming, staging, simulation, and theatrical performance in hospitality operations • -Stressed the need to provide services in a way that will leave memorable experiences (even in routine hospitality operations)

Hemmington, 2007;Knutson, Beck, Kim and Cha, 2006; Pine and Gilmore 1998, 2002; Williams, 2006

Hospitality as a Philosophy

-Viewing hospitality as a philosophy of service, which can be applied to all service sectors -Adopting the generosity and kindness associated with hospitality has the potential to aid other service providers in offering more genuine and sensitive care.

Gilje, 2004; Pizam, 2007b; Randall and Senior, 1994; Severt, Aiello, Elswick and Cyr, 2008

(Adapted from Abraham and Amir, 2009, p. 136)

The above table (1.1) explains that professionalism means a business-like approach that

involves doing things right and providing good quality services to the customer by

developing employees skills, which will hopefully improve customer satisfaction and loyalty.

Hospitableness has implications for staff attitudes and interactions and generating feelings of

being looked after. The customer will be offered with great value, genuine care which

assumes by this research the creation of bonds and relationships that will lead to loyalty.

15

Hospitality is experienced. Hospitality is an industry that creates and crafts positive and

memorable experiences which can help generate more satisfied and loyal customers. This

approach is a philosophy that can have a positive impact on other service sectors.

Sthapit (2019) has studied the antecedents of memorable hotel experiences and has

highlighted four main factors beginning with the service provider’s attitude. He stated, “staff

play an active role in co-creating tourist’s hotel experience during the consumption and usage

process through a warm and welcoming attitude... the attributes linked to the attitude of the

staff include warm and welcoming, friendliness, gentleness and professionalism” (p. 2460).

Service provider positive attitudes belong to the understanding and meaning of

hospitableness. Lashley (2015) has discussed the characteristics of hospitableness following

the philosopher Telfer (2000). He has summarised five important indicators accordingly as

follows:

The desire to please others, stemming from general friendliness and benevolence

or from affection for particular people; concern or compassion

The desire to meet another’s need

A desire to entertain one’s friends or to help those in trouble

A desire to have company or to make friends

The desire for the pleasures of entertaining – what we may call the wish to

entertain as a pastime (p. 5).

There was also an Interesting discussion by Lugosi, (2008) regarding the differences between

hospitality and hospitableness:

1- Hospitality is transactions that may fulfil basic physiological, economic, social or

political needs where hospitableness is hospitable interaction as an acknowledgement

of the other. Moreover, it is an overt willingness, not only to share one’s social space,

but also to create a shared, experiential space in which the participants become part of

a contextually defined social entity.

16

2- Hospitability is openness towards the other and it is acceptance of the other, albeit

temporarily, where hospitableness is inherently emotional because the hospitable act

requires those involved to abandon or suspend rational judgement in the creation of

mutual well-being and joy (p.141)

These differences discussed by Lugosi (2008) highlight the importance of hospitableness in

the hospitality industry. Being hospitable is the desire to go beyond transactional

relationships and build more intimate, emotional and bonding relationships that are essential

for the development of memorable, positive experiences and lasting relationships, which is

crucial for the hospitality industry.

1.3 Hospitality businesses in the Middle East

The definition of the Middle East as stated by the United Nations World Tourism

Organisation (UNWTO) comprises of the following countries: Egypt, Jordan, Kuwait,

Lebanon, Libya, Bahrain, Oman, Palestine, Qatar, Saudi Arabia, Syria, Iraq, UAE,

andYemen. These nations share a comparable culture, values, language, and beliefs

(Kovjanic, 2014). The Middle East is gifted with an extensive variety of assets that should

make it the perfect region for the development of tourism, from climate to shorelines, unique

historical monuments and archaeological sites that have helped mark out the development of

the mankind. Tourism in the area, in an effort to capture growing market shares, has

expanded by adding leisure products to the cultural and heritage sites that had been the

foundation of the original development (Morakabati, 2012).

According to the UNWTO, the Middle East had one of the highest growth rates in

international visitor’s arrivals between 2005 and 2011, growing on average by 7.3% per year.

The number of foreign tourist arrivals in 2009 for the first time in the previous twenty years

dropped by almost 5% compared to the year 2008. In 2010, the highest growth rate in the

world was noted, growing by 14.2% (Kovjanic, 2014). The Middle East and North Africa

17

(MENA) stay one of the fastest-growing regions worldwide. In light of a current database of

about 150,000 rooms currently operating in the region, leading hotel operators planned to

release a further 100,000 rooms between 2016 and 2020. Indeed, 18,000 new rooms were

planned to be introduced to the market during 2016 alone (HVS report, 2016).

The World Travel and Tourism Council (WTTC, 2017) report stated that the direct

contribution of the travel and tourism industry in the Middle East region in 2016 was USD

81.4bn and it was expected to grow by 4.5% in 2017. The total contribution to the GDP in

2016 was USD 227.1bn, which was is estimated to rise by 5.2% in 2017. Furthermore, in

2016, the Middle East travel and tourism industry directly supported 2,357,000 jobs (is

forecasted to grow by 2.1% in 2017); including employment in hotels, travel agents, airlines,

and restaurants. The wider, supply chain, employment contribution was 5,730,500 jobs,

which was forecasted to rise by 2.4% in 2017. Visitors contributed USD83.2bn in 2016, with

a 5.15% rise estimated for 2017, and the region is forecasted to attract more than 67 million

international tourists. The Middle East travel and tourism investment was USD46bn in 2016,

which was expected to grow by 7.25 in 2017.

Six main cities were mentioned in this Middle East econometric forecast (WTTC 2017), Abu

Dhabi, Doha, Dubai, Jeddah, Muscat, and Riyadh, two of which are scheduled to host mega-

events in the near future, Dubai will host the Expo in 2020 and Qatar the FIFA World Cup in

2022. The six cities have over 124,000 hotel rooms and they have seen significant levels of

new supply added in recent years (PWC, 2014).

1.4 The Hospitality Industry in Saudi Arabia

The Kingdom of Saudi Arabia is popular for its enormous geographical size and it is the

biggest country in the Middle East. Saudi Arabia is a unique tourist destination due to its

18

location, tourist attractions and historical and holy sites. The Saudi authorities have only

recently realised the significance and importance of the tourism industry and focused their

attention on tourism development. Saudi Arabia is a country that has an ironic history and an

outstanding diversification of resources. Such places include the coastal area of the Red Sea

and the Arabian Gulf, the desert that spreads throughout the country, and the beautiful

mountains found in both the northern and southern regions. In addition, there are numerous

cultural and historical sites, such as Madain Saleh in the Hijaz, and the original Najd

settlement in Diriyah (Mufeed, and Gulzar, 2014).

Saudi Arabia has unique and attractive markets factors to support the tourism and hospitality

industry to grow and prosper, such as a large, growing and youthful population, rising

disposable incomes and investment in education and training, which is estimated to grow

from 27 million in 2010 to 31.2 million in 2020. More than half of the Saudi nationals are

under the age of 25, which provides great employment opportunities for the leisure and

tourism industry, and the Income levels in the country are now similar with many European

countries with GDP per capita estimated to rise by 21.4% between 2011 and 2015 to over

SAR 71,100 (US$18,960) per annum (Colliers International Tourism, 2011).

The Saudi Government has recognized the need to diversify away from its reliance on oil,

and the tourism industry has been acknowledged as a priority area for investment.

Government expenditure to date has been mainly focused on developing religious tourism

(Mecca and Medina together attracted c. 4.4m inbound tourists and 5.2mm domestic tourists

in 2009) and business travel sectors (Colliers International Tourism, 2011). Saudi Gazette

(2018) highlighted that Saudi Arabia had set the stage to grow recreation tourism, as it chases

targets of 30 million guests annually by 2030. The current extensive investment in the

Kingdom’s growing tourism industry will drive growth of 13.5% compound annual growth in

the hospitality market. Accordingly, 2018 will see the first tourism visas allowed to

19

international tourists and, for the first time, women aged 25 and older will now be able to

acquire a single entry, 30-day traveller visa without a male chaperone. The kingdom has

declared a series of leisure projects in recent months, including the formation of a Six Flags

theme park in Riyadh by 2021 and a Red Sea resort built on 100 miles of sandy coastline and

supported by investment from Virgin Group founder Sir Richard Branson. Including hotels,

residences and a transport hub, the project will generate 35,000 jobs, aiming to add SR15

billion to the economy.

According to Mufeed, and Gulzar (2014), Saudi Arabia already has an adequate

accommodation stock of 7,068 hotels and 41,000 rooms which is half that of the total volume

for the GCC jointly. The majority of rooms are in located Mecca and international chains

control over 80% of five-star properties. However, there are 50,000 hotel rooms planned to

be built in the near future to meet the forecasted demand. As of January (2018) Saudi

Arabia's tourism section has more than 64,000 rooms in development, according to the latest

numbers from STR. These totals make up 76 per cent of the more than 84,500 current hotel

rooms in the country as of 2018 (Victoria Rosenthal, 2018)

The world travel tourism council (WTTC) 2017 annual report stated that the direct

contribution of the Saudi Arabia Travel and Tourism industry to the country GDP was ($

21.0bn), 3.3% of total GDP in 2016 and was expected to increase by 2.9% in 2017. The total

contribution to the country GDP was ($65.2bn), 10.2% of GDP in 2016, and predicted to

grow by 4.7% in 2017. Additionally, it has directly supported 603,500 jobs in 2016 and the

total contribution of employment were 1,141,500, which were 9.7% of total employment and

expected to rise by 3.7% in 2017. The investment in this sector in 2016 was ($28.6bn), and it

is forecast to rise by 9.8% in 2017 and, additionally, in 2016, Saudi Arabia generated $11.5bn

from visitor exports, which is anticipated to grow by 5.1% in 2017.

20

The tourism industry is a significant part of the Saudi Vision 2030. The Saudi government

has already planned and implemented development in the sector by building facilities and

entertainment sites to grow and develop tourism. The country, historically limited to religious

tourism, is now hoping to attract 1.5 million leisure tourists by 2020 through the easing of

visa constraints and investment in hospitality projects. Global companies such as the Rezidor

Group and Accor have reported plans to open many new hotels in the following five years

(KPMG, 2017).

According to Colliers International report (2017), Vision 2030 aims to increase the capacity

to welcome ‘Umrah’ guests from 8 to 30 million per year, double the number of UNESCO

heritage sites, which would encourage more national leisure tourism, and increase domestic

spending on cultural and entertainment activities inside the country from 2.9% to 6%. The

government has already started working toward achieving these goals by expanding Holy

Mosques and have implemented major infrastructure projects in Makkah and Madinah cities

and other parts of the country as well through the establishment of the General Entertainment

Authority.

There has been significant development in the hospitality and tourism industry in Saudi

Arabia in recent years. Saudi Arabia has been a well-known destination for several reasons,

such as religious and business purposes. However, now the country has decided to open the

door for all tourist to come and enjoy unique experiences from the astonishing Red Sea,

historical sites and much more exciting destinations. According to Deloitte (2019), in 2018,

“the Public Investment Fund of Saudi Arabia launched several GIGA tourism and hospitality

projects including NEOM, The Red Sea Development, Amaala, Al Ula, Wadi Al Disah

Development and Qiddiya.” (p. 11). The report continues, “These projects, combined with

the recent issue of tourist visas, form an integral part of Vision 2030’s economic

21

diversification agenda and aim to position the Kingdom as a leading global leisure and

cultural tourism destination.” (p. 11).

Moreover, in terms of the Saudi hotel market, the country has “dramatically increased its

hotel offering in recent years following growing interest from international hotel groups.

Hotel supply in terms of rooms grew by 13% over 2017 with rooms in construction set to

increase current stock levels by 51.4%, with over 48,000 rooms, according to STR” (EMEA

Commercial, 2019, p.2). This research recognised the importance of enriching visitor

experiences to Saudi Arabia and has also recognised the essential roles that hotels can play.

Hotels are the gate to the country, and its visitors deserve hospitable and memorable

experiences, which will positively impact their total experiences in Saudi. It was this change

of experience direction that inspired the researcher to study customer loyalty and research all

aspects of customer interactions, and relationships with their hotel as well as study the hotel

practices and effort in their customer journey. The researcher aims to be part of Saudi

Arabia’s effort in developing the hospitality and tourism sectors by conducting this research.

1.5 Arab Relationships and Loyalty

Berry and Parasuraman (1991) and Berry (1995) referred to social bonds as “intermediate

level relationship marketing in securing customer loyalty, where the service provider goes

further than price incentives to build lasting relationships with the customer, and building

social bridges” (as cited in Shammout et al. 2006, p. 2). A study by Shammout et al. (2006)

examined Arabic guest at five-star hotels regarding the link between relational bonds and

customer loyalty. The study empirically advanced our understanding regarding the

importance of relational bonds, especially structural bonds, as vital in maintaining customers’

loyalty in the five-star hotel industry. The study outcomes confirmed a strong positive

relationship between structural bonds and loyalty. Another study (Alrubaiee, and Al-Nazer,

22

2010), focused on Arabic customer in the banking industry in Jordan to investigate the impact

of relationship marketing orientation such as bonding, trust, communication, and satisfaction,

in customer loyalty. The study has proved that the measurement of relationship marketing

variables can predict customer loyalty and therefore managers should pay close attention to

relationship marketing variables when designing strategies.

Al Bostanji (2013) conducted a study regarding customer loyalty in Saudi Arabia five-star

hotels in Riyadh city. The study revealed that the most influential dimensions of service and

quality of customer loyalty were empathy. Therefore, hotel managements have to empower

their employees and provide them with adequate support to do their job efficiently. The

employee should understand and pay close attention to their customer’s needs, desires, and

personal requirement. Additionally, the employee should express their genuine care, honesty,

and enthusiasm when taking care of customer services and problems. Manuel Hidalgo (2015),

when talking about the people of Saudi Arabia, stated, “Without any doubt the utmost and

first important asset of the Kingdom is its PEOPLE. Always welcoming and hospitable, the

Saudis are very supportive and willing to help other people with a smile on their face”.

1.6 Research questions and objectives

The rationale of the research is as follows: first, the current understanding and practices from

businesses in the hospitality and tourism industry towards customer loyalty, as assumed in

this research, are under high pressure due to rapid market changes and the variety of options

and alternatives available. Moreover, this industry is heavily dependent on customer

experiences that involve several factors such as personal interactions, which make them

difficult to manage. In the hospitality industry, it is important to carefully craft and shape the

customer experience to create a loyal customer base that leads to a stable and prosperous

23

business. As Hemmington (2007) stated, customers in the hospitality industry do not buy

product or services, they purchase experiences; they do not buy service quality, they want

memories. Customers need to be more engaged, involved, recognised and appreciated in this

sector and businesses need to obtain the right culture, develop the proper practices and

implement the best performance. Hospitality companies wanting to increase their market

share and profitability must pay more attention to their current customers and work towards

retaining them (Tepeci, 1999). Correct business practices can boost customers’ positive and

favourable memories leading to a stronger level of loyalty. In the hospitality sector, customer

loyalty would be a more profitable approach because, as a mature industry, the hospitality

business must adapt to securing market‐share gains rather than market‐growth gains (Jarvis

and Mayo, 1986). This research will investigate the different perspectives of customer loyalty

in the hotel industry and will highlight the essential factors associated with it. The research

also aims to create a more insightful conceptual framework that would help businesses to

gain and retain lifetime loyal customers.

The purpose and intention of this research are to explore the following questions:

How does loyalty develop? Can we identify the potential stages and transitions that

support the development of loyalty in the hotel industry highlighting business inputs

and the characteristics of each stage of loyalty?

To examine and study the research questions, five objectives have been formed:

1. To explore the meaning and complexity of loyalty

2. To build a conceptual framework of customer loyalty stages and transitions

3. To identify indicators and characteristics of each stage and transition.

4. To highlight the inputs necessary to drive loyalty at each stage

5. To develop and test a coherent structure for the development of loyalty and build a

reliable measurement scale for each stage and transition and test the links and

relationships exist.

24

1.7 Significance and ContributionThe tourism and hospitality industry is considered to be a service industry. In this industry,

there is intense competition in attracting and acquiring customers and, more importantly, to

retain and win loyal customers. In the service industry, customers are more likely to have

more interactions, involvement, and engagement with the service providers. Hemmington

(2007) suggested that, “customers do not buy service delivery, they buy experiences; they do

not buy service quality, they buy memories” (cited in Bharwani, and Jauhari, 2013, p. 824).

Thus, for the efficient delivery of hospitality products and services, it is critical for hospitality

organisations to keep the customers’ perspectives central while designing customer

experiences. As we are living in the time of the experience economy there is a big need to

understand better what makes positive and memorable experiences that would help the

business to grow and succeed.

The intended theoretical contribution of this research is as follows: the current literature does

not consider the holistic nature of loyalty – it only sees the states as separate explanations of

the same thing. This research contribution aims to develop and test a coherent structure for

the development of loyalty and the inputs necessary to drive loyalty at each stage.

Customer loyalty means repeat customers who bring greater value and business, advocate

customers who help distribute and transmit the message of the business in a way that makes it

real to others, a reduction in the cost of advertising, loyalty discounts and programs so the

business can focus on more critical elements (Jones and Sasser, 1995). This research aims to

enhance customer loyalty in the hotel industry, which is more about the experience offered

rather than about being on a loyalty scheme, discount programs or points system. The

literature has provided an extensive range of elements and factors that explain the nature and

state of customer loyalty together with its antecedents and outcomes. This research aims to

25

create a conceptual model that can gather and organise these concepts in a coherent structure

and framework that can help the hotel industry to understand their customer needs, attitudes

and behaviours better in order to gain long-term loyalty-based customers. Additionally, this

research aimed to provide a reliable model that will have different stages of customer loyalty

alongside businesses practices and inputs that influence customer loyalty formation and

development. These aims will provide a clear picture of the customer loyalty concept and will

assist all interested stakeholders in academia and the industry to have a better understanding

of loyalty its creations, influence, antecedents and outcomes.

1.8 Structure of the research

The structure of this research is as follows:

Chapter 2: Reviewing Loyalty

This chapter reviews the existing research studies on customer loyalty states. It explores the

meaning and complexity of customer loyalty and identifies four main loyalty stages. These

stages are behavioural loyalty, emotional attachment, affective commitment and belonging.

The chapter discusses these four stages, their meaning, current understanding, current

literature and more, as well as discussing loyalty as a process of development over time.

Chapter 3: Loyalty as something companies do (Transitions)

This chapter reviews the existing research studies around customer loyalty transitions and the

current practices and methods employed by businesses. It highlights some of the current

business practices and efforts toward gaining loyal customers as well as customer behaviours

and attitude toward their preferred business. The chapter also discusses loyalty schemes,

attracting and acquiring transition, customer engagement, personalisation and value creation

as well as customer recognition and appreciation. The chapter also presents the idea of the

26

development process of loyalty and provides the research conceptual framework and initial

hypotheses.

Chapter 4: Methodology

This chapter discusses the research methodological framework, indicating the research

philosophy that determined the research approach and methods. Furthermore, it highlights the

key research philosophy crucial for this research, alongside the overall research techniques

and procedures, which has led to a direct and clear method being developed.

Chapter 5: Methods

This Chapter describes the qualitative and quantitative approaches to the study. To support

the conceptual model built upon the interpretation of the literature review, the researcher

developed a protocol for semi-structured interviews and conducted eight interviews to gain a

better understanding and to highlight the feasibility of the conceptual model. The second part

is the quantitative approach. It explains the scale development steps such as study context and

Q-sort, item generation, survey development and administrations and discusses the study

analysis approaches.

Chapter 6: Finding and Analysis

This chapter presents the results of the analysis of the data collected using the main study

instrument. In the chapter, the researcher provides all aspects of the main study participants in

terms of their socio-demographic characteristics - such as gender, age, nationality, marital

status and level of education – and their profiling in terms of the participants’ preferred hotel

types, length of existing relationship, number of visits, purpose of travel, and their overall

27

experiences regarding their current/last visit. The chapter includes the analysis of data such as

exploratory factor analysis, scale reliability, descriptive and correlation analysis.

Furthermore, it includes a T-test and ANOVA along with the regression analysis that been

employed to test the research hypothesis as well as the outcome of the cluster analysis.

Chapter 7: Discussion and Conclusion

This chapter presents and discusses the main findings of the research. It includes the review

of the research’s findings, and discusses in detail the study results presented in chapter six.

As well, it provides the research theoretical and methodological contributions. Furthermore, it

highlights the research main practical and managerial implications along with study

limitations and future suggestions.

28

Chapter 2: Reviewing Loyalty

2.1 What do we understand by loyalty?

This chapter will review the existing research studies around customer loyalty states,

antecedents and outcomes. The chapter will discuss the idea of the development process of

loyalty, and it will present a conceptual framework that explains loyalty states and transitions

and how customer loyalty can be developed over time.

In fiercely competitive markets, service industries have moved toward paying better attention

and more emphasis than before to customer loyalty rather than concentrating on acquiring

and attracting new customers (Shoemaker and Lewis, 1999). Loyalty can add to the

organisation in many ways, including creating improved profit by enhancing revenues,

reduced costs to acquire and attract customers, reducing customer-price sensitivity, and

reducing the costs to serve customers familiar with a firm’s service delivery system (Reicheld

and Sasser, 1990). Loyal customers will help promote your hotel. They will provide strong

word-of-mouth; voluntary business referrals and provide references etc. Loyal customers

increase sales by purchasing different types of the hotel's products and by buying more

(Bown and Chen, 2001). Loyal customers are considered to be great for the hospitality firms

since they are easier to serve than non-loyal customers are, and they bring better profitability,

referrals, continuous profit, and a willingness to accept price premiums, and are considered to

be a competitive advantage for the firm, as well as decreases marketing and operational cost

(Reichheld, 1996). How then can we define loyalty in general? Loyalty in a broad sense is:

“the recognition of the specialness of a relationship which results in differential

and more favourable treatment towards this relationship, the creation of a bond as

the result of this relationship, and the defence and reinforcement of this

relationship.” (Aksoy et al. 2015, p. 2467)

29

Moving towards and concentrating more on the concept of customer loyalty. Customer

loyalty is defined as

“A deeply held commitment to rebuy or patronize a preferred brand or service

consistently in the future, thereby causing same repetitive brand or the same

brand set purchasing, despite situational influences and marketing efforts having

the potential to cause switching behaviour.”

(Oliver 1997, p. 392)

Additionally, loyal customers are customers who have favourable attitudes toward the

company, continue and commit to repurchase the product/service, and act as an advocate for

the company (Bown and Chen, 2001). Gremler and Brown, (1996) have also acknowledged

customer loyalty as the degree to which a customer exercises repeat purchasing behaviour

from a service provider, enjoys a positive attitudinal disposition toward the business and

considers using only this provider despite competitors.

Watson et al. (2015) defined customer loyalty as a group of attitudes that come along with a

sequence of purchase behaviours that systematically favour one business over other

businesses. Jones and Sasser (1995) have come up with three attitudinal measures of loyalty,

which are the intention to revisit or repurchase; actual visits or purchases, their volume and

occurrence, positive word of mouth, as well as the desire to spread the knowledge about the

service and products including recommendations to others. Behavioural loyalty is mostly

stated in terms of repeated purchase and usage behaviour, often conditioned on customer

satisfaction, and is measured by previous and past purchasing of one’s brand and competing

brands. Attitudinal loyalty is usually communicated as an ongoing relationship to a brand,

often conditioned on affirmative customer preferences and favourable attitude towards the

brand, and is strongly influenced by significant others (Mascarenhas et al. 2006).

30

Table 2.1 provides a summary of the concept of loyalty and the main types of loyalty, which

is attitudinal and behavioural loyalty together with the loyalty antecedents such as

commitment, trust and satisfaction, and outcomes such as word of mouth and actual

behaviour from different researchers and studies previously covering different areas of

customer loyalty.

Table 2.2: Summary of the loyalty concept, antecedents and outcome

Constructs Definitions Common aliases Representative papers

Loyalty A collection of attitudes

aligned with a series of

purchase behaviours that

systematically favour one

entity over competing

entities.

Customer loyalty, true

loyalty

Brady et al. (2012);

Dick and Basu (1994);

Oliver (1999);

Sirdeshmukh et al.

(2002)

Attitudinal

loyalty

A cognition or

pleasurable fulfilment

favouring one entity such

as a firm, its brand, its

salespersons, or its

offerings (Oliver 1999, p.

35)

Affect, preference,

warmth

Chaudhuri and

Holbrook (2001);

Chaudhuri and Ligas

(2009); Yim et al.

(2008)

Behavioural

loyalty

Repeated purchases that

stem from a conation or

action orientation

involving a readiness to

act favouring one entity

(Oliver 1999, p. 35)

Purchase, repurchase,

repurchase intentions,

retention, return

Brown (1952);

Chaudhuri and

Holbrook (2001); De

Wulf et al. (2003);

Ehrenberg et al.

(1990); Horsky et al.

(2006)

Antecedents

Commitment A desire to maintain a

valued relationship

Affective,

behavioural,

Anderson and Weitz

(1992); Moorman et

31

obligation, and

normative

commitment

al. 1992; Morgan and

Hunt 1994

Trust Confidence in the

reliability and integrity of

a seller

Trustworthiness,

credibility,

benevolence, and

honesty

Hibbard et al. (2001);

Morgan and Hunt

(1994); Sirdeshmukh

et al. (2002)

Satisfaction The perceived difference

between prior

expectations and actual

performance

Overall satisfaction or

dissatisfaction with

the relationship,

product or service

Geyskens and

Steenkamp (2000);

Tse and Wilton (1988)

Loyalty

incentives

Enticements meant to

encourage repeat

patronage

Rewards, gifts, perks,

benefits, resources,

investments, and

loyalty programs

De Wulf et al. (2001);

Ganesan (1994)

Outcomes

Word of

mouth

A customer's positive

referral or endorsement

of the seller to others

Referrals and

customer referrals

Berger and Schwartz

(2011); Söderlund

(2006)

Performance Actual seller

performance

enhancements including

sales, the share of wallet,

profit performance, and

other measurable changes

to the seller’s business

Sales, share, sales

effectiveness, profit,

revenue, Tobin’s Q,

and sales performance

Gupta et al. (2004);

Kumar (2013);

Palmatier et al.

(2007); Petersen et al.

(2009)

Adapted from Watson et al. (2015, p. 793).

Oliver (1997) proposed that loyalty is a process of four stages consisting of cognitive loyalty,

effective loyalty, conative loyalty and finally action loyalty. These stages are considered in

such a progressive sequence of customer behaviour that one can observe that attitudinal

32

loyalty leads to behavioural loyalty. “A person becomes loyal in a cognitive fashion at first,

then reaches affective loyalty followed by conative loyalty, and finally becomes loyal in

action” (Taghipourian and Bakhsh, 2015, P 50). In contrast, Mascarenhas et al. (2006)

expresses loyalty through three dimensions: brand loyalty, behavioural loyalty, and

situational loyalty. Brand loyalty occurs when continually buying a preferred product or

service. Attitudinal loyalty occurs when a bond and connection are established between the

brand and customer and positive attitudes are developed. Situational loyalty depends upon

shopping and buying condition at one specific moment (Klopotan et al. 2016).

This introduction gives the overall understanding of loyalty, types of loyalty and some of the

essential antecedents and outcomes. The following literature section will explain the types

and state of loyalty, and then explain what motivates customers to be loyal to a service or

product by recognising businesses current practices and efforts.

2.2 Literature on loyalty as repeat behaviour

Customer loyalty, as discussed in the previous section, can be perceived as customer actual

behaviour and action. This is one way of looking at the meaning of customer loyalty.

Behavioural loyalty is defined as the customer’s intention to repeat purchase or visit and

patronise the product or services (Chaudhary and Holbrook, 2001). Customers who buy a

product or service, and who have experienced sound quality, a competitive price, a great

experience and other factors that lead to customer satisfaction, will consider repeating the

purchase and conduct a type of advocacy. According to Hallowell (1996), loyalty behaviours

results from customers’ perceptions that the value of the service or product received from one

firm is greater than that available from another firm; these behaviours are likely to include

relationship continuance, the development of the level of the relationship, and

recommendation (word of mouth advocacy). Consistent repetitious purchase behaviour is

also an indicator of behavioural loyalty (Bown and Chen, 2001).

33

Day (1969) questions the use of merely behaviour-based loyalty measures because these do

not differentiate between genuine loyalty and spurious loyalty: “The key point is that these

spuriously loyal buyers lack any attachment to brand attributes, and they can be immediately

captured by another brand that offers a better deal” (p. 30). At this level, the sense of

attachment and bonding is still weak and needs to be developed through deeper interpersonal

relationships and interactions. Table 2.2 below summarises customer behavioural loyalty

literature.

Table 2.3: Summary of Behavioural Loyalty

Stages & Transitions

Customer Indicators

Business practice

Business outcome Key Authors

S # 1 Behavioural Loyalty “Calculative commitment”

A higher sense of satisfaction, develop a level of positive attitude, Greater intention to revisit

Favourable treatment, great values, building relationship, incentive and attractive deal or program, attention

.

Volume and occurrence of purchases and visits, relationship continuance, develop the level of relationship, and recommendation (word of mouth advocacy (R.R.R)

Bown and Chen, (2001); Hallowell (1996)

2.3 Loyalty as emotional attachmentCustomer loyalty can be more than just a repeat behaviour from the customer, and it can have

a more profound meaning that goes beyond simple transaction and repetition. Customer, as

discussed in previous parts of the literature review, can develop a sense of emotional

attachment and bond with the product and services. An emotionally attached customer would

add significant benefit to businesses, and these benefits will be discussed in the following

literature sections. However, what is the attachment. In the generic sense, the attachment is an

emotion-laden mother-infant bonding phenomenon wherein:

34

“Each party manifests intense pleasure in the other's company and especially in

the other's expression of affection… whereas distance and expressions of

rejection are appraised as disagreeable or painful.”

(Bowlby, 1969, p. 242)

From the consumer perspective, the consumer who has developed a bond and emotional

attachment with a brand or service is more likely to express and display a positive and

favourable attitude toward that brand, including a level of commitment and willingness to pay

more. These robust attachments are mainly developed through interactions between customer

and service-product providers, and it takes time to develop. Interactions give a deep meaning

to the relationship, which leads to stronger attachment (Thomson et al. 2005). This study also

highlights the willingness to maintain proximity, emotional safety, and security and

separation of distress. The implication here is that where companies work toward the creation

of an emotional (brand) connection with their customers, this enhanced loyalty will deliver an

improved financial and sustainable position (Park et al. 2010).

In the service industry, it is not all about the quality of the service or product provided but

rather the experience crafted and shaped during the service encounter. As Bharwani, and

Jauhari, 2013 stated in their studies "the traditional hospitality service offerings of lodging

and boarding are being purposefully encased in engaging experiences to create memorable

events" (p.824). They continued that hotels are eager to offer a totally positive and

memorable experience shaped and crafted for each to meet their personal and emotional

level. Tasi’s (2011) research results revealed five main attachment components:

relationship quality created by the product and service brand;

trust in the integrity of the product and service brand;

the aesthetic attractiveness of the product design and service setting;

delight induced by contact with the product and service brand; and

35

image congruity that the customer perceives with the product and service brand”

(Tasi 2014. p. 993)

According to Berry (2000), great brands continuously create an emotional connection with

their targeted consumers. They work beyond the rational and economic level to spread

feelings of friendship, closeness, warmth, and trust. Emotions heavily influence a consumer’s

decision, and so the business must focus on emotions. Tasi (2014) states that

“The attached brand is described as most possible to evoke the feeling of security,

trust, confidence, attractiveness, cheerfulness, and identification; the emotions of

anxiety and distress may arise when consumers find their most attached brands

are not available in the market.”

(Tasi, 2014 p.999)

Brand attachment can also be explained by the Brand love, which can be explained when a

customer gets significantly satisfied with a specific brand and develops a strong emotional

and bonding attachment. This emotion includes customer passion and attachment, favourable

evaluation and feedback, express positive feelings and love (Caroll and Ahuvia, 2006).

Kandampully (1998) states that a customer attached to a firm will often pursue ways that can

place himself/herself in an influential role and can play a significant part when they see the

firm going wrong. These kinds of customer can be reliable and effective in providing

feedback and recommendations for the firm. In recent marketing strategies, firms take a

logical transference to brands through bonding and consumer attachment. Such bonding and

close relationships between the customer and firm also ensures protection and survival.

Emotional attachment/bonding creates security of the brand for customers, which leads them

to avoid separation and switching (Grisaffe and Nguyen, 2011).

Levy and Hino (2016) studied the customer-bank relationship and typified it is personal,

emotional and feeling based. Once the customer feels positive about the service, he or she

will be at a degree of satisfaction that will lead to the emotional attachment that will develop

36

and enhance the type and term of the relationship and which ultimately will help to gain

loyalty. A high level of attachment and high repeat visits typifies premium loyalty.

Businesses should strive and work hard to create these attachments with their customers since

it will lead to a level of loyalty that is hard for a competitor to break (Shoemaker and Lewis,

1999).Table 2.3 below summarises costumer emotional attachment.

Table 2.4: Summary of Emotional Attachment

Stages Customer Indicators Business practice Business outcome

Key Authors

S # 2 Emotional Attachment - Connection (BA)

positive and favourable attitude, level of commitment and willingness to pay more, feelings of friendship, closeness, attractiveness, identification, implies a deep desire to preserve security felt in connection with a brand and to actively avoid separation, manifesting in emotionally rooted repurchasing and avoidance of switching

Interactions, connect with each individual guest on a personal and emotional level to create memorable experiences, trust in the integrity, delight induced

A better understanding of the customer, loyalty, passionate customer, a greater level of WOM and involvement, money (R.R.R)

Park et al. (2010); Kandampully, (1998); Grisaffe and Nguyen, (2011); Caroll and Ahuvia, (2006); Tasi’s (2011)

2.4 Loyalty as affective commitmentThe literature review has also stated customer commitment to product or service as a measure

and indicator of customer loyalty. The attribute and outcome of customer affective

commitment to product or service will be discussed in the following literature.

Commitment can be explained as “an emotional or psychological attachment to a brand that

develops before a customer would be able to determine their repeat purchase behaviour was

37

derived from a sense of loyalty” (Beatty and Kahle, 1998, p. 4). In their study, commitment

proved empirically to facilitate the relationship between brand experience and loyalty.

Companies that focus on incentive programmes to strengthen their loyalty will not be likely

to succeed unless they put more effort on gaining customer satisfaction that will lead to

strong commitment and trust, which will increase the level of loyalty (Watson et al. 2015).

Commitment has been defined as "an enduring desire to maintain a valued relationship"

(Moorman, Zaltman, and Deshpande 1992, p. 316). Hocutt (1998) explains commitment as a

customer intention to continue a type of action or activity or the willingness to maintain a

relationship. There are two types of commitment, and these are affective and calculative

commitment. Affective commitment reflects the customer’s desire to continue and sustain the

relationship, is more in feelings of loyalty and attachment, and contains a positive motivation

(Geyskens, Steenkamp, Scheer, and Kumar, 1996). Effective commitment is directly

influenced by the degree of trust between the service provider and the customer. The trust is

developed through the degree and superiority of the quality of the service provided as well as

the bonding and connection strategies that were involved (Gounaris, 2005).

Customers, who we can refer to as an effectively committed customer, are measured by their

sense of pleasure in continuing doing business with the company and their emotional state of

trust toward the company. Affective commitment can play a significant positive role in the

development and progress of customer satisfaction and loyalty toward the firm, whereas, on

the other hand, calculative commitment is more about the economic costs of ending the

relationship (e.g., the switching cost) (Wu et al. 2012).

Dwyer et al. (1987) stated that commitment occurs where there is a willingness to make

short-term sacrifices for future benefit. Auh et al. (2007) explain that affective commitment is

created when customers and businesses establish an emotional bond, sense of belonging and a

38

strong feeling of liking. The customer at this stage will be dealing with businesses success or

failure as their own and they will be motivated to be involved in the service delivery, and

they will be more likely to understand and cope with the firm’s internal processes, procedure,

and culture.

Table 2.5: Summary of Affective Commitment

Stages & Transitions

Customer Indicators

Business practice Business outcome

Key Authors

S # 3 Affective Commitment

The desire to maintain the relationship, sense of pleasures in continuing doing business, intention to continue, willingness to make short-term sacrifices, experiencing the organization’s successes or failures as their own,

consistent and superior quality and service, a greater level of trust, engagement and involvement and interpersonal interactions, leadership efforts

Customers are motivated to participate in the service delivery, understand the rationale behind the firm’s internal processes, rules, and norms, greater tangible and intangible benefits, transactional values (R.R.R)

Beatty and Kahle, (1998); Watson et al. (2015); Hocutt (1998); Wu, et al. (2012); Auh et al. (2007)

2.5 Loyalty as belongingThe literature has also studied loyalty from the viewpoint of customer citizenship behaviour

and customer attitudinal last loyalty. These two can be incorporated in the term belonging.

This section examines the research as the ultimate and most abundant type of customer

loyalty and explains the importance, characteristics, and outcomes from this type of loyalty.

39

Customers gain a sense of belonging, which is explained by customer attitudes and

behaviours where the customer is proud of the firm they support and is enthusiastic and

fervent to play their role as a unique customer, advocator, and protector. He/she is often

inspired and influenced by the service staffs, the firm, the brand or other customers (Nammir

et al. 2012). Customer sense of belonging is developed via customer involvement in business

practices and it creates an inner feeling within a customer where they see themselves as an

essential and integral part of the business (Al-Agaga et al. 2012). The development of

customer-employee interpersonal relationships is a vital motivation for customers to

contribute to the business, so businesses are eager to hire employees who are skilled and

aware of the importance of rapport building and interpersonal skills (Gremler and Brown,

1999). Customer attitudinal last loyalty as Mascarenhas, et al. (2006) stated, is a result of the

total customer experience, which has to be a positive, involving, engaging, continuing, and

socially fulfilling physical and emotional customer experience through all key stages of one’s

consumption chain and one that is carried about by a distinct market offering that calls for

active and positive interaction between consumers and suppliers.

Bown and Chen (2001) highlight that loyal customers assist other customers within the hotel

and will offer others advice and recommend other products and facilities within the hotel, as

well as serving as an information source. These customers have a higher sense of belonging

and they act as a partial employee. They need less effort from the business, and cost less,

since they know more about the company and can act as a part of the team. Moreover, they

have been observed acting like employees, educating and supporting other customers in

hotels, airlines, and casinos about the products and services. Zeithaml (1996) stated that such

customer could act as sales people who spread positive word of mouth and recommendations

that should increase the number of new customers. Bettencourt (1997) explains that these

behaviours, known generically as voluntary customer performance, refer to those helpful and

40

discretionary behaviours of customers that support the ability of the firm to deliver service

quality. He reviews three types of voluntary behaviours including customer suggestions for

service improvement, cooperation and conscientiousness during the service encounter and

positive word-of-mouth and recommendations. The model of antecedents of CVP emphasises

the indicators of relationship quality between the customer and the organisation including

customer commitment, satisfaction and perceived support for customers (Bettencourt 1997, p

384)

Yi and Lee (2013) have extended the understanding and meaning of customer citizenship as

follows: Customer citizenship behaviour encourages customers to communicate anticipated

problems proactively, overcome service failures and issues, and to adjust willingly to

situations beyond their control. Customer citizenship behaviour (CCB) is therefore

“Based on the theory of social exchange where a customer reciprocates positive

behaviour from a sense of personal obligation or gratitude … in which customer

spreads positive word of mouth about a firm, acts as a firm’s partial employee

and co-operates with the firm’s employees.”

(Aggarwal, and Soch, 2013., p 34)

CCB can also be described by the customer’s actions and reactions. These actions include

customers working to spread the knowledge about the brand, showing they are proud by

dressing or buying something that represents the company such as a t-shirt, and showing they

care about the brand development and quality by suggesting some recommendations and

offering feedback, engaging in company research activities, protecting the company’s

properties from misbehaving customers and finally acting positively toward the company

services and products such as when mistakes happen (Bove et al. 2009). Di et al. (2010) have

developed four characteristics of CCB, altruism, conscientiousness, courtesy and civil virtue.

41

Baloglu (2002) conducted a study on casino customers that showed that the truly loyal

customers had more trust and emotional commitment to the businesses. They also found that

truly loyal customers are more likely to have a low interest in alternative brands or services,

tend to spread the word-of-mouth and positive advocacy, spend money on other services

provided within the casino, and cooperate and are more involved with the product and with

the service provider. As well, truly loyal customers spend more time at the casino and are

more beneficial to the organisation financially and in marketing cost as well as they tend to

spend more in a different facility. Thus, for the businesses to maintain them they must

implement a better and continuous friendly service, meet their promises, enhance the positive

image and experience, and give attention to all small details and requests made by customers.

Amine (1998) discussed a conceptual framework for the true brand loyalty construct. This

conceptual framework highlighted the antecedents and consequences of true brand loyalty.

The precursors are a high level of involvement and satisfaction that leads to a sense of

belonging, attachment, and confidence about the brand, which builds both collective and

affective commitment. The consequences of true brand loyalty are consumers’ effort and

voluntary support for the brand by spreading the words and advising others. Table 2.5 below

summarises customer belonging.

Table 2.6: Summary of Belonging

Stage &

Transition

Customer Indicators Business

practice

Business outcome Key

Authors

S # 4

Belonging

Feeling Proud,

essential part of the

family and business,

commitment, trust,

The

interpersonal

relationship,

rapport

Customer contribution,

information source,

enthusiastic advocate,

supporting and

Al-Agaga

et al.

(2012);

Aggarwal,

42

positive attitude,

altruism,

conscientiousness,

courtesy, civil virtue,

and willingly To

Adapt - Enthusiasm

To Recommend

building,

leadership

efforts, and

Asking for

personal

opinion and

suggestion,

involving in

business

development

and plans,

inviting for

special

occasions,

differentiate

them than

others.

educating another

customer, strong WOM,

personal feedback and

suggestions, overcome

service failure,

protecting the company,

spending more, business

growth and

sustainability (R.R.R)

and Soch,

(2013);

Bove et al.

(2009); Di

et al.

(2010); Yi

and Lee

(2013);

Bettencourt

(1997);

Zeithaml

(1996)

2.6 Loyalty as a process of development over timeOliver (1997) has developed a model of the development of customer loyalty. This model

proposed four phases, which are the cognitive, affective, conative and action phases. The

model suggested that the customer at first develops a sense of belief that the service or

product is better than the others (the cognitive phase) and then at the affective phase the

customer starts to develop a positive attitude toward emotion for the service or product and

these then develop into the customer’s intention to purchase or visit (The conative phase)

and, finally, it is in the action phase where the customer exercises the real purchase or visit.

Mascarenhas et al. (2006) stated that loyalty is an accumulative process that involves both

43

interactive and interdependent processes between the providers of the services or product and

their customers.

Christopher et al. (1993) developed and designed the relationship marketing ladder of

customer loyalty. They proposed that businesses should turn new clients into a repeat

customer, and then work to move them to be a supporter of the business and finally got them

to be a strong advocate for the business. He stated that, for companies to be able to turn a

potential customer into the active customer, they needed to work with their four traditional

marketing mix, which are product, price, promotion, and place. Then, for companies that

want to move their customer into a supporter and advocate must focus on relationship

marketing. However, this model has not explained the customer states of loyalty and the

potential developments, and has also not covered all aspects of customer loyalty antecedents

and outcomes. This research will develop and test a coherent structure for the development of

loyalty and the inputs necessary to drive loyalty at each stage.

At this stage of the research, the researcher has identified four states of loyalty and their

antecedents and consequences. This research proposed that the first state of customer loyalty

is when businesses turn attracted customers into repeat and advocate customers, and then

move them through to being an emotionally attached customer to the businesses, and then

progressively move them to be affective committed customer finally to belonging customer to

the businesses, which is assumed in this research as the final stats of loyalty. By now, this

research has suggested that customer loyalty can be developed and strengthen over time in

responding to excellent business practices and customer behaviour and attitude. These

superior business practices and efforts will be explained in the following chapter.

44

45

Chapter 3: Loyalty as something companies do (Transitions)

The literature in chapter 2 has explained the different states of loyalty. It has highlighted four

different states of loyalty, which are behavioural loyalty, emotional attachment, commitment

and belonging. It has also provided the reader with the definitions, importance,

characteristics, and advantages. The literature reviewed in this chapter will review the

businesses practices toward attracting and gaining loyal customers. It will also explore the

current practices that help businesses to develop and strengthen their customer loyalty and

relationships with their brands and services. Furthermore, it will highlights what companies

can do at each stage of their customer loyalty programme and what kind of efforts and

practices needed to move their customer from one stage to the other.

3.1 Loyalty schemesLoyalty schemes are “offering delayed, accumulating economic benefits to consumers who

buy the brand. Usually, this takes the form of points that can be exchanged for gifts and free

products etc.,” (Mark et al. 2003. p 311). Companies today use the customer loyalty

programmes for many purposes. As Mark et al. (2003) stated these programmes can be seen

as the company vehicle for sustaining customer loyalty, increasing brand share and

expanding market access as well as developing a database and assisting cross-selling and

alliances. Loyalty scheme will therefore provide “a mechanism for both repeat purchase and

improved perceptions of the company involved as well it establishes reciprocity between the

customer and the company”.(Smith, and Sparks, 2009 p. 543).

Loyalty programmes can help companies in reaching satisfactory goals. Rayer (1996)

suggests a loyalty programme can work as a device that can help to recognise and to reward

loyal customers. However, loyalty programmes can also fail to obtain a good result for

businesses, an example of which is contained in the Sharp and Sharp study on the impact of

46

the Australian FlyBuys loyalty programme of developing strong loyalty. In their study,

Sharp and Sharp (1997) did not “observe the consistent finding of FlyBuys brands showing

higher levels of average purchase frequency given their individual levels of penetration”. ( p.

479) Second, they found that: “Of the six loyalty program brands, only two showed

substantial repeat‐purchase loyalty deviations and both of these showed this deviation for

non‐members of the loyalty program as well as members” (Sharp and Sharp, 1997, p. 485).

However, in this study, the researcher has placed less emphasis on loyalty programmes,

assuming that these programmes act as just one of the many factors that help companies in

the process of gaining and retaining customers. In this research, the emphasis is more on the

role of human interactions, engagements, and recognition and so on rather than focusing on

loyalty schemes and programmes.

3.2 What companies do to attract and acquireIn the tourism and hospitality industries, it is important for businesses to understand their

customer needs and desires to attract customers and then meet and exceed their desires and

expectation so as to retain them. Customers nowadays are seeking more memorable, unique

and pleasurable experiences. Customers are eager to gain greater value for their expenditure

and time. In the service industry, one of the biggest concerns is considered to be delivering

customer satisfaction, which can be created by providing a quality service. According to

Kattara, Saad, Weheba, and El-Said (2015), service quality and customer satisfaction are

influenced considerably by the values received and behaviours of service employees. The

service industry is moving toward selling experiences and memories rather than discrete

products and services, to meet each’s expectations and desires. In addition, customers today

are looking for destinations and businesses that offer them memorable and unique moments;

as Hemmington (2007) suggested; “customers do not buy service delivery, they buy

experiences; they do not buy service quality, they buy memories.” Thus, for the practical

47

delivery of hospitality products and services, it is critical for hospitality organisations to keep

the customers’ perspectives central while designing customer experiences” (cited in

Bharwani & Jauhari 2013. p 824).

The customer experience as defined by Gentile, Spiller, and Noci (2007) is developed

through multiple sets of interactions between a customer and service or product providers,

which provokes a reaction. This experience is mostly personal and implies the customer’s

engagement at different levels (rational, emotional, sensorial, physical, and spiritual (Verhoef

et al. 2009). The customer experience is mainly concerned with the level of interaction and

involvement that occurs during a customer visit. Companies have realised the importance of

giving their employees more freedom and space to express their feeling, emotions, and

connections to customers, which influences the customer experience. Moreover, frontline

hospitality employees who are heavily engaged and involved in the guest/customer interface

are seen as facilitators and crucial players in the creation and development of customer

experiences. (Bharwani, and Jauhari, V, 2013).

Customer experience is becoming an extremely important factor in the businesses success

and survival in today’s business environment. As Bharwani and Jauhari (2013) highlighted in

their study, the future survival and growth of hospitality organisations is strongly dependent

upon their ability to convert the simple interactions occurring between employees and

customers into a stage that creates and offers memorable and positive experiences.

Employees must display empathy and emotions when dealing with a customer to have a

successful service interaction (Gabbott and Hogg 2001). These empathies add a great

influence on how the customer evaluates and perceive the service interaction and raises the

feelings of compassion. (Berry et al. 2002)

48

Kattara et al. (2015) have suggested that human interaction is a crucial determinate of

customer satisfaction and the hospitality industry relies heavily upon the service encounter

since there are more intangible products and offers in the industry. So and King (2009)

studied the relationship between the hotel brand and customer experience. They indicated

that, for experienced hotel customers, “Service experience plays a dominant role in building

hotel brand equity. As customers accumulate service experience, and become familiar with

the hotel brand, their perception of the brand is influenced by their experience with the hotel,

rather than with its brand name" (So and King 2009 p. 605). Table 3.1 below summarises the

attract and acquire transition.

Table 3.7: Summary of Attracting and Acquiring

Stages &

Transitions

Customer

Indicators

Business practice Business

outcome

Key Authors

T # 1

Attracting &

Acquiring

Good level

of

satisfaction

Unique and memorable

experience-/Great

value of money, high

quality, positive

interactions

Repeated

customer, level

of WOM

Kattara, Saad,

Weheba, and El-

Said (2015);

Bharwani and

Jauhari (2013);

Gentile, Spiller,

and Noci

(2007);

Hemmington

(2007)

49

3.3 How do companies promote customer engagement?

The literature has stated that for businesses to retain and gain their customer loyalty they

should have an environment that encourages customer-employees engagement and

involvement. Customers are looking for a greater sense of engagement that can move the

relationship upwards. Customer engagement, as Doorn et al. (2010) indicates, includes

behaviours that go beyond ordinary business transactions. Customer engagement consists of

different acts of behaviours, such as word of mouth, providing recommendations, assisting

other customers, blogging, providing feedback, as well behaviours such as creating and

offering suggestions to improve the consumption experience (Verhoef et al. 2010).

According to the social exchange, relationship growth is a slow process, starting with small

transactions in which a low level of trust is required because of the limited risk involved and

in which both partners can show their honesty, allowing them to enlarge their relation and

engage in key and big transactions (Blau, 1968). Consumer engagement is a

multidimensional concept including cognitive, emotional, and behavioural dimensions, and it

plays a crucial role in the process of relational exchange (Brodie, et al. 2013).

Nammir et al. (2012) describe customer engagement, as the level of a customers’ numerous

“attendance” in their relationship with a service organisation. This includes physical,

emotional and cognitive presences. The authors also suggested that customer engagement is

comprised of four components, namely, vigour, dedication, absorption, and interaction.

Consumer activities with the business and services providers such as participation,

involvement, telepresence work as customer engagement antecedents, while engagement

consequences may include commitment, trust, self-brand connections, consumers' emotional

brand attachment and brand loyalty (Brodie, et al. 2013 ).

50

The nature of the interaction, involvement, engagement between customer and service

provider is considered to be a significant factor in the process of the creation of the customer

perception about the service quality as Gazzoli, M., and Kim, (2013) have stated. As well as a

positive and high-quality service interaction lead to a satisfactory level of satisfaction, the

quality and positive perceptions are shaped by the service provider’s behaviours and attitudes

that include a willingness to serve, helpfulness and knowledge. Table 3.2 below summarises

customer engagement.

Table 3.8: Summary of Engagement

Stages &

Transitions

Customer

Indicators

Business practice Business outcome Key

Authors

T # 2

Engagemen

t

Level of trust,

confidence,

the feeling of

security,

delight,

commitment

and trust, a

higher level of

satisfaction

Higher level on

interactions,

participation,

involvements and

engagement,

comprises of four

components,

namely, vigour,

dedication,

absorption, and

interaction,

employee’s attitude

(e.g. willingness to

serve), behaviour

(e.g. helpfulness),

and expertise (e.g.

product and service

knowledge)

Word of mouth,

recommendations

, assisting other

customers,

blogging,

providing

feedback,

suggestions to

improve the

consumption

experience,

training(R.R.R)

Doorn et al.

(2010);

Verhoef et

al. (2010);

Brodie, at al

(2013);

Nammir, et

al. (2012);

Blau,

(1968)

51

3.4 How do companies create value?The literature has placed great emphases on the importance of the value creation and

personalization on customer relationship with businesses. Product and service providers

should pay attention to their individual customer needs and wants and try to craft their

services and experiences in accordance. As noted below, the creation of value needs a close

and direct relationship with the customer that results in:

“Feelings of likeness or a personal relationship between the interacting

individuals serve to smooth a process of developing a good faith attitude between

the protagonists of the relationship.”

(Gounaris, 2005 p136)

Oh et al. (2007) stated that the hospitality and tourism industries are concentrating more on

shaping and offering individually customized hospitality and travel experiences to their

guests. They create these offers to match their individual customer’s preferences, needs, and

taste. By adapting such practices, businesses will be able to distinguish themselves from

others and will be able to offer value-added services and products to their customer overall

experiences. Businesses also need to delight their customers and enhance their true

participation and voice to sustain the relationship Kandampully, (1998).

Personalisation can be defined as the social content of interaction between service employees

and their customers. Thus, personalisation highlights the way in which service employee’s

interact and deal with the customer (Mittal and Lassar, 1996). The meaning of personalising

the co-creation experience is that firms develop and implement individualised customer

interactions, involvements and their desirable outcomes. A personalised co-creation

experience provides a tremendous opportunity for both companies and customers at each

interaction points and they both can experience the value creation and extraction (Prahalad

and Ramaswamy, 2004b).

52

Co-creation is defined as “the joint creation of value by the company and the customer;

allowing the customer to co-construct the service experience to suit her context” (Prahalad

and Ramaswamy, 2004b, p. 8). By doing so, firms and their customers are able to identify

and solve issues jointly, while they will offer an experience environment that allows and

welcomes more dialogue and the creation and development of more personalized experiences

(Prahalad and Ramaswamy, 2004b).

Smith R. (1998), president of the loyalty marketing from Focal Point Marketing, claims that

loyalty occurs when a customer sees you as their own business and believes that your offers

and services are the best that can meet their needs and desires, thus excluding other

competitors and alternatives and only considering you for their purchases.

Dlačić and Žabkar (2012) suggest that relationship commitment, which leads to customer

loyalty, is established through the partnership with customers, as well as by offering value to

customers. By co-operating with customers, a company will have access to more information

about a customer’s requirements and desires and thus can integrate the customers’

information into product/service design. They can engage their customers in the process,

development and innovation stages of new products and services. This practice helps the

business to gain a greater pool of information for offering value to their customers. Providing

value to customers can strengthen and enlarge the customer relationship commitment.

Hennig‐Thurau and Klee (1997) suggest that businesses that offer a higher level of

transactional quality can provide the customer with a constant positive reinforcement for

having made the right decision, thus generating emotional bonds. However, it is more

important and valid for in-person interaction that overall quality includes the achievement of

the customer’s social needs connected with product and service related transactions. Table

3.3 below summarises customer personalization.

53

Table 3.9: Summary of Personalization and Value Creation

Stages &

Transitions

Customer

Indicators

Business practice Business outcome Key Authors

T # 3

Personalization

and Value

Creation

experience the

value creation

and extraction,

customer co-

construct the

service

experience to

suit his or her,

context,

environment for

better

participation,

Believe they

have inputs and

their voice is

valued,

providing

individually

customized

hospitality and

travel

experiences,

developing

distinct value-

added

components,

interpersonal

interactions,

experience

environment that

allowed and

welcome more

dialogue, engage

customers in the

process,

development and

innovation stages,

fulfilment of the

customer's social

needs

identify and solve

issues jointly,

Customers refer

to it as their own,

a partnership with

the customer,

strengthen and

enlarges customer

relationship

commitment,

profit (R.R.R)

Kandampully,

(1998);

Gounaris,

(2005);

Dlačić and

Žabkar

(2012); Smith

R. (1998);

Prahalad and

Ramaswamy,

(2004b) Oh et

al. (2007)

54

3.5 What do companies do to recognize and appreciate their customer?Businesses need to understand the importance of appreciation and recognition for their repeat

customers. Businesses should make great efforts towards acknowledging their customer and

expressing their gratitude for their continuous businesses, which will add positive impacts on

their level of loyalty and attachment to the business. Gremler and Brown (1999) have studied

the loyalty ripple effect and have recommended that customers who continuously refer and

recommend the organization to others should be recognised and appreciated in different ways

to strengthen their commitment and actions. Customers can be recognised and appreciated

publicly by displaying their names at the business venues, giving them direct attention in

front of other customers, offering them exclusive prices designed only for them and offering

them special rewards and different types of free promotion. Businesses should implement

special conduct for such customers as:

“gift giving can be explained by reciprocity theory which posits that giver’s

actions make the recipient feel obligated to reciprocate the favour…… business

gift-giving should reflect these considerations to maximize their potential in

stimulating customers not only to feel rewarded for past business but also

tactfully induced (i.e., not manipulated) to continue doing business with the

giver.”

(Beltramini, 2000, p 75)

To strengthen and personalise the relationship with the customer, businesses should enhance

personal practices such as inducements. Inducements behaviours can include implementing a

culture or a system that recognises and remembers individual customer’s special events, and

offer special personalised favours, gifts, or meals (Ahearne, at el, 2007). Good brand and

value equities may not be sufficient to retain the customer, but instead, the relationship equity

becomes an important and essential factor in that sense. Lemon, Rust and Zeithaml, (2001)

discussed relationship equity as a crucial element that can enhance the bond and connection

55

between the customer and the brand. Businesses need to implement unique and efficient

practices in order to enrich the relationship. These practices need to pay more attention to

customer special recognition through customer treatment, customer affinity and community-

building programmes. Such programmes aim to create a strong emotional bond and

attachment, by involving a customer’s personal life in the relationship and offering to

distinguish recognition and favourable treatment that appreciates customer behaviour with

intangible benefits (Lemon et al. 2001).

Hospitality businesses should show in practice their appreciation of their customer’s business

and work toward the fulfilment of these customer’s desires and needs. Furthermore, they

need to continue their relationship and keep in touch with their customer so that the customer

will willingly continue doing business with the business and will actively exercise word of

mouth and advocate for the business (Tepeci, 1999). Kandampully (1998) highlights the

importance of the relationship between businesses and their customers by indicating that,

“Organisation’s ability to establish a long-term emotional and bonding attachment with its

customer is considered to be the base of a loyal relationship. Service loyalty start develops

when the customer receives a constraint superior value and services and service personnel’s

commitment”.

The understanding and interpersonal relationships between firms and customers can add

tremendous benefits. For example, mistakes that occur during the delivery of service or

performance can be forgiven when the relationships established between customers and

service providers, according to Thompson et al. (2005):

"Having the ability to understand and relate to another’s thoughts, feelings, and

experiences increase the likelihood of forgiving encountered mistakes since

through forgiveness one reframes an unfavourable experience and turns negative

56

emotions, thoughts, and behaviours resulting from perceived interpersonal harm

into more positive emotions, thoughts, and behaviours "

(As cited in Wieseke, et al. 2012 p. 316)

Table 3.4 below highlights customer appreciation and recognition:

Table 3.10: Summary of Firm Appreciation and Recognition

Stages &

Transitions

Customer

Indicators

Business practice Business

outcome

Key Authors

T # 4 Firm

Appreciation,

recognition

Feel obligated,

Constantly refer

and recommend

the organization,

strong emotional

connections, long-

term bond

Feeling special and

appreciated,

constantly

recognized, paying

focus and attention,

Addressing their

special events and

days, special prices,

rewards and offers,

special treatment and

inducement, linking

the customer’s

relationship with the

firm to other

important aspects of

the customer’s life

Committed

and

emotionally

attached

customer,

Greater trust,

confidence,

WOM,

support,

defence

(R.R.R)

Tepeci,

(1999);

Gremler and

Brown

(1999);

Lemon et al.

(2001);

Kandampully

(1998);

Zeithaml,

(2001)

57

3.6 Build-up of conceptual model and relationshipsReviewing the literature on customer loyalty has enabled the researcher to see loyalty from

different perspectives and understandings. Loyalty is heavily discussed in the literature, and it

has been recognized by numerous attributes, characteristics, and outputs. It has also been

studied as behavioural inputs, attitudinal inputs, commitments and various other inputs. The

literature also acknowledges some of the primary loyalty antecedents and consequences.

The conceptual framework is made of four essential loyalty stages, which represent the

customer state of loyalty, and four transitions that represent business practices and inputs.

This conceptual framework aims to understand the development and movement of customer

loyalty antecedents and outcomes for businesses to be more efficient and effective in dealing

with and attaining their customers.

The conceptual framework has four transitions and four stages. It first starts with the business

efforts in obtaining and attracting customers by offering high-quality services, products, and

settings alongside reasonable prices and choices, which lead to the first stage of customer

loyalty - behavioural loyalty, which is expressed by the number of visits or intention to revisit

and the level of referral and recommendation to others. The second transition is the customer

engagement that involves interpersonal interaction and relationships as well as having

attentive and knowledgeable employees, which leads to the second stage of loyalty - the

emotional attachment. The third transition is value creation, offering a personalized service

that meets customer requirements, which leads to the third stage of loyalty – the affective

commitment of customer continuations, advocacy, invitations, and support. The fourth

transition is customer recognition and appreciation, which is expressed by genuine care,

valuing events and showing gratitude, and which leads to the final stage of loyalty –

belonging, where the customer feels a sense of being valued and a part of the operation.

Figure 3.1 summarises the conceptual framework of this research.

58

Figure 3-1: Customer Loyalty Development

3.7 Development of initial hypothesesAccording to Hallowell (1996), loyalty behaviours result from customers’ perceptions that

the value of the service or product received from one firm is greater than that available from

another firm, these behaviours are likely to include relationship continuance, the development

of the level of the relationship, and recommendation. The first hypothesis assumes that a

customer who receives high-quality services and products, reasonable prices, and satisfactory

experiences would be willing to repeat the visit or purchase, intend to visit or purchase and

exercise a type of referral.

Hypothesis 1

A hotel’s efforts in the attracting and acquiring transition have a positive effect on

customer behavioural loyalty.

59

According to Berry (2000), great brands continuously create an emotional connection with

their targeted consumers. They work beyond the rational and economic level to spread

feelings of friendship, closeness, warmth, and trust. Emotions profoundly influence a

consumer’s decision, and so the business must focus on emotions. The second hypothesis

suggests that a customer who is able to engage, involve and develop bond and relationships

with the product and service providers will be driven to be emotionally attached.

Hypothesis 2

A hotel’s efforts in the customer engagement transition have a positive effect on

customer emotional attachment.

Oh et al. (2007) stated that the hospitality and tourism industries are concentrating more on

shaping and offering individually customized hospitality and travel experiences to their

guests. They create these offers to match their individual customer’s individual preferences,

needs, and taste. By doing so, businesses will be able to distinguish themselves from others

and will be able to offer value-added services and products to their customer overall

experiences. Additionally, Businesses need to delight their customers and enhance their

honest participation and voice in order to keep moving up and sustains (Kandampully, 1998).

This third hypothesis proposes that a customer who is offered special services crafted to suit

his or her special needs and desires would be more of a committed customer.

Hypothesis 3

A hotel’s efforts in value creation and personalisation have a positive effect on customer

affective commitment.

Customer Loyalty as Mascarenhas, et al. (2006) stated, is a result of the total customer

experience which has to be a positive, involving, engaging, continuing, and socially fulfilling

physical and an emotional customer experience through all key stages of their consumption

60

chain and one that is carried about by a distinct market offering that calls for active and

positive interaction between consumers and suppliers.

Hypothesis 4

A hotel’s efforts in the recognition and appreciation transition have a positive effect on

the customer belonging stage.

The fourth hypothesis assumes that a customer who experienced a sense of gratitude,

appreciation, and recognition by the service providers would be more likely to feel a sense of

belonging.

Hypothesis 5

Customer Behavioural Loyalty stage mediates the relationship between customer

engagement and customer emotional attachment stage.

This hypothesis explains the first step in the progress of customer loyalty. It assumes that a

customer who exercises a type of behavioural loyalty will be exposed to more engagement

and relationships with the service providers and these will develop his state of loyalty into the

state of emotional attachment.

Hypothesis 6

Customer Emotional Attachment stage mediates the relationship between

personalisation and value creation and Customer Affective Commitment stage.

This hypothesis explains the second move and progress of customer loyalty. Customers who

reach the state of emotional attachment would have a higher chance of receiving special

treatment from the business, and these special treatments will develop his or her loyalty into

the third state of loyalty, which is the affective commitment state.

61

Hypothesis 7

Customer Affective Commitment stage mediates the relationship between customer

recognition and appreciation and Customer Belonging stage.

This hypothesis explains the third move up of customer loyalty. It assumes that a customer

who is emotionally attached and affectively committed to the service or product, if offered a

good level of recognition and appreciation, would be more likely to develop his or her loyalty

state into the state of belonging which is assumed in this research as the eventual stage of

loyalty

Figure 3-2: Hypotheses for the Conceptual Model

62

3.8 SummaryThis chapter has discussed customer loyalty in general and has highlighted the different state

and types of loyalty alongside their attributes, antecedents, and outcomes. This chapter has

also explained the possibility of the development of customer loyalty, and explains how

businesses can create and maintain a truly loyal customer. It has revealed the investment and

practices that a business should make and direct to the appropriate customer. Furthermore, it

has explored and highlighted the customer attitudes, behaviours and characteristics at the

different stages and the transitions of loyalty needed for businesses to act more professionally

and efficiently. Looking at current business practices regarding loyalty programmes and

incentives it is clear that these practices are neither very effective nor efficient. Customers

need to be more engaged, involved, recognised and appreciated, and this cannot be done

without authentic interpersonal relationships and interactions as well as a supportive business

culture developed and implemented by business leaders. Finally, this paper is proposing a

conceptual framework that aims to conduct useful research about loyalty, which then might

lead to suggestions and recommendations that would help businesses.

63

Chapter 4: Methodology 4.1 IntroductionThis chapter will explain the research methodological framework, indicating the research

philosophy that will determine the research approach and methods. It will also discuss the

key research philosophy, crucial for this research, alongside the overall research techniques

and procedures, which will lead to a direct and clear methodology.

4.2 Research Question, objectives and hypothesesThe purpose and intention of this research are to explore the following questions:

How does loyalty develop? Can we identify the potential stages and transitions that support

the development of loyalty in the hotel industry highlighting business inputs and the

characteristics of each stage of loyalty?

To examine and study the research questions, five objectives have been formed:

1. To explore the meaning and complexity of loyalty

2. To build a conceptual framework of customer loyalty stages and transitions

3. To identify indicators and characteristics of each stage and transition.

4. To highlight the inputs necessary to drive loyalty at each stage

5. To develop and test a coherent structure for the development of loyalty and build

reliable measurement scale for each stage and transition and test the links and

relationships existed.

Upon the study of the literature review and the preliminary study presented in Chapters 1, 2

and 3, the following hypotheses will be examined to achieve the objectives.

1. A hotel’s efforts in the attracting and acquiring transition have a positive effect on

customer behavioural loyalty.

2. A hotel’s efforts in the customer engagement transition have a positive effect on

customer emotional attachment.

3. A hotel’s efforts in value creation and personalisation have a positive effect on

customer affective commitment.

4. A hotel’s efforts in the recognition and appreciation transition have a positive effect

on the customer belonging stage.

64

5. Customer Behavioural Loyalty stage mediates the relationship between customer

engagement and customer emotional attachment stage.

6. Customer Emotional Attachment stage mediates the relationship between

personalisation and value creation and Customer Affective Commitment stage.

7. Customer Affective Commitment stage mediates the relationship between customer

recognition and appreciation and Customer Belonging stage.

4.3 Research philosophyResearch philosophy, as Saunders et al. (2016) discussed, refers to “a system of beliefs and

assumptions about the development of knowledge” (P 124). The development of knowledge

as defined by Saunders et al. (2016) is a way of solving or answering a specific problem

within business or research. The three main assumptions are used in the stage of developing,

understanding and interpreting research questions, methods, and findings. These assumptions

are epistemological assumptions, ontological assumptions and axiological assumptions

(Crotty, 1998). Table 4.1 below explains the three types of research assumptions,

Table 4.11 Types of Research Assumptions

Ontology Epistemology Axiology

Refers to assumptions about

the nature of reality

Your ontological assumptions

shape the way in which you

see and study your research

objects.

Concerns assumptions about

knowledge, what constitutes

acceptable, valid and

legitimate knowledge, and

how we can communicate

knowledge to others (Burrell

and Morgan 1979).

Refers to the role of

values and ethics within

the research process. This

Incorporates questions

about how we, as

researchers, deal with both

our own values and those

of our research

participants.

Research Assumption (Source Saunders et al .2016 p 126)

65

These three assumptions of research philosophies can be distinguished by their adherence to

objectivism and subjectivism. According to Bergmann et al. (1941), Boring et al. (1964),

Brodbeck (1954), Kantore (1958), and Lifberman and Bernhardt (1962):

“The objectivists have argued that the scientific method requires publicly

observable, replicable facts, and these are available only in the area of overt

behaviour. Subjective phenomena such as intending, conceiving, and repressing

can be studied only indirectly through their connections with overt behaviour, if

at all”

(As cited in Diesing, 1966, P. 125)

Saunders et al. (2016) have also stated that:

“Objectivism incorporates the assumptions of the natural sciences, arguing that

the social reality that we research is external to us. Whereas Subjectivism

incorporates assumptions of the arts and humanities asserting that social reality is

made from the perceptions and consequent actions of social actors.”

(P. 130)

Table 4.2 below summarises the main elements of each assumption.

Table 4.12 Elements of Research Assumptions

Objectivism Subjectivism

Ontology Real, External, One true reality

(universalism) Granular (things)

Order

Nominal/decided by convention

Socially constructed, Multiple

realities (relativism)

Flowing (processes), Chaos

Epistemology Adopt assumptions of the natural

scientist

Facts, Numbers, Observable

phenomena, Law-like

generalisations

Adopt the assumptions of the arts and

humanities, Opinions, Narratives,

Attributed meanings

Individuals and contexts, specifics

Axiology Value-free, Detachment Value-bound, Integral and reflexive

Objectivism and Subjectivism summary Adapted from (Saunders et al. 2016 p. 129)

66

4.4 Research Paradigm and Key Research PhilosophyA paradigm can be seen as a set of basic beliefs that deals with principles, and it highlights

the worldview that explains the nature of the world (Guba, and Lincoln, 1994). In business

and management research, there are five main philosophies: positivism, critical realism,

interpretivism, postmodernism, and pragmatism. A positivist researcher would observe and

test facts that would lead to meaningful and reliable data (Crotty, 1998). The researcher will

develop data that have causal relationships to build law-like generalisations (Gill and Johnson

2010). The positivist will develop their research hypothesis according to existing theory and

all theory developed will be tested to confirm or disconfirm relationships (Saunders et al.

2016). The positivist researcher will try to be natural and keep themselves apart from the

research and data so they can avoid manipulating their findings (Crotty 1998). The positivist

will typically use deductive and highly structured methods with a considerable number of

participants (Saunders et al. 2016)

The second philosophy is the philosophy of critical realism which focuses, as Saunders et al.

(2016) state, “on explaining what we see and experience, regarding the underlying structures

of reality that shape the observable events”.(P 138). It is also described as a meta-process of

examination, which studies and challenges presently held values, assumptions, and known

social structures (Gray, 2017). The researcher, seeing reality as external and independent,

concludes that the way to understand the world is by being immersed in events that give a full

experience including feelings and sensations. The realistic critical researcher would adopt

historical analysis and would be objective to minimise bias and errors (Saunders et al. 2016)

The third philosophy is the philosophy of interpretivism. As Gray (2017) stated,

“Interpretivism asserts that natural reality (and the laws of science) and social reality are

67

different and therefore require different kinds of method. ((p.23). Interpretivism is a

subjective philosophy which believes that humans are not like physical phenomena, as

humans and their- activities tend to develop and have meaning as this is what interpretivists

study. Interpretivists intend to create new and better understanding and explanations of the

social worlds and contexts. This philosophy tends to have inductive methods that involve in-

depth investigation and interpretation of people’s experiences and thoughts (Saunders et al.

2016)

The fourth philosophy is postmodernism which “emphasizes the role of language and power

relations” (Saunders et al. 2016, p.141). The postmodern researcher challenges the current

way and practice of knowing and thinking (Kilduff and Mehra 1997). The postmodernist

opinion is the confidence that “the world is not known objectively at all and what is known is

merely the sole creation of humankind, that is, the outcome of variegated aims, actions, and

interactions, and conventions of humans” (Sousa,2010 p 462).

The fifth philosophy is pragmatism, which works on integrating both objectivism and

subjectivism, facts and values, real and rigorous knowledge and experiences. The pragmatist

researcher usually starts by identifying a problem and works toward contributing practical

solutions, since they care about having a practical outcome (Saunders et al. 2016). Table 4.3

explains the research paradigms, methods, and tools developed by Mackenzie and Knipe

(2006).

Table 4.13 Research Paradigm

Paradigm Methods (primarily) Data collection tools (examples)

68

Positivist/ Post

positivist

Quantitative: "Although qualitative

methods can be used within this

paradigm, quantitative methods tend to be

predominant. . ." (Mertens, 2005, p. 12)

Experiments

Quasi-experiments

Tests

Scales

Interpretivist/

Constructivist

Qualitative methods predominate

although quantitative methods may also

be utilised.

Interviews

Observations

Document reviews

Visual data analysis

Transformative Qualitative methods with quantitative and

mixed methods. Contextual and historical

factors described, especially as they relate

to oppression (Mertens, 2005, p. 9)

A diverse range of tools -

particular need to avoid

discrimination. E.g., sexism,

racism, and homophobia

Pragmatic Qualitative and/or quantitative methods

may be employed. Methods are matched

to the specific questions and purpose of

the research.

May include tools from both

positivist and interpretivist

paradigms. E.g. Interviews,

observations and testing and

experiments.

Source (Mackenzie and Knipe (2006).

4.5 Research approach and methodThe development of theory has to go through one or more of the major approaches, which

are, deduction, induction, and abduction. Deductive reasoning begins with a theory drawn

from the literature review about a specific topic and then the researcher develops research

questions and hypotheses to test or confirm the theory in a particular context. The test will be

done by adapting existing or developing new measurement scales and large-scale data

collection that will lead to statistically valid findings. This reasoning is also called the top-

down approach (Trochim et al. 2016). Inductive reasoning is the opposite, where the

researcher begins with specific observations that lead to explanatory patterns emerging,

69

which can lead to the development of tentative hypotheses and the potential development of

theory (Trochim, et al. 2016). The third approach is abductive reasoning where the

researcher gathers data to understand and identify phenomena, recognise themes and

highlight patterns, to produce a new theory or change an existing one. (Saunders et al. 2016)

Figure 4-3: Deductive and Inductive

Source (Trochim, et al. 2016).

Table 4.14 Research Approaches

Deduction Induction Abduction

Logic In a deductive inference,

when the premises are

true, the conclusion

must also be true

In an inductive

inference,

known premises are

used to generate

untested conclusions

In an abductive inference,

known premises are used

to generate testable

conclusions

Use of

data

Data collection is used

to

evaluate propositions or

hypotheses related to an

existing theory

Data collection is used

to

explore a phenomenon,

identify themes and

patterns and create a

conceptual framework

Data collection is used to

explore a phenomenon,

identify themes and

patterns, locate these in

a conceptual framework

and test this through

subsequent data collection

and so forth

Source (Trochim, et al. 2016).

70

Deductive Theory Hypothesis Observation Confirmation

Inductive Observation Pattern Tentative hypoyhesis Theory

4.6 Selecting the Research Philosophy This research has adopted a positivist philosophical paradigm. Positivism adopted Hum’s

(philosophical ontology) theory of the nature of reality where knowledge about reality can be

generated by senses. Positivism also uses Rene Descartes’s (epistemology) theory of

knowledge where the creation and generation of knowledge goes through reasoning. The

positivist paradigm states that real events can be examined empirically and clarified with

logical analysis (Leong, 2008). Positivist accords to the three research assumptions, ontology,

epistemology, and methodology. In responding to ontology, positivists believe that a

comprehendible reality is assumed to be real, driven by absolute natural laws and

mechanisms. Within the Epistemology assumption, positivist view is stated to be dualist and

objectivist, which allows the examiners to determine how things are and how things work. In

the methodology assumption, the positivism adapts experimental and manipulative that

focuses on confirmation of the hypothesis (Guba, and Lincoln, 1994).

The research has adopted both the qualitative and quantitative approach. The first approach is

the conduction a preliminary study using a semi-structured interview. The positivist paradigm

as Aliyu et al. (2014) stated: “emphasizes that genuine, real and factual happenings could be

studied and observed scientifically and empirically and could as well be elucidated by way of

lucid and rational investigation and analysis” (p.83). This study aims to explore and know

what is happening and identify the possibility of the phenomenon of the development of

customer loyalty, which is called the demonstration of possibility. (Leshan 1990).The

interview follows the phenomenological approach that focuses on the notion of interpretation.

It follows the positivist positions and assumes that the world comprises physical entities,

which are possible for the researcher to identify and recognise easily. In addition, this

71

approach sees the facts as depending on how the researcher interpreted experiences and

stories told. The aims of the interview are also to get beyond the immediate and direct

experienced meanings (Nielsen, 2007). The researcher developed the interview aiming to

understand better the phenomenon and to be able to have quality and robust knowledge for

the second phase of the research, which is the quantitative study.

The second phase of the research adopts the positivist philosophical approach by developing

a quantitative approach. “As a philosophy, positivism is in accordance with the empiricist

view that knowledge stems from human experience. It has an atomistic, ontological view of

the world as comprising discrete, observable elements and events that interact in an

observable, determined and regular manner” (Collin, 2010 p. 38). The positivist philosophical

position is that the development of customer loyalty stages and transitions are real and the

knowledge can be acquired and obtained through observation, measurement, and testing. The

research will develop a survey instrument that will contain all items and factors that were

determined by the study of the literature review and the preliminary study. Positivist studies

usually adopt the deductive approach and focus on facts (Crowther and Lancaster, 2008).

This research will follow the deductive approach and will be conducting a quantitative

method that will allow the research to have a significant sample, thus enabling generalisation

and more reliable and valid conclusions. This research is following the positivist philosophy

since the researcher believes there is a reality out there and it can be measured, observed,

tested and verified by following the deductive approach. The researcher will adopt

quantitative methods, which will help answer the research questions and objectives.

4.7 Summary

This research is following the positivist philosophy since the researcher believes there is a

reality out there and it can be measured, observed, tested and verified by following the

deductive approach. The research has adopted two research phases; the first is the preliminary

72

study where the researchers conducted semi-structured interviews with people to gain a better

understanding of people views, thoughts, and experiences in regards to customer loyalty. In

the second phase, the researcher adopted a quantitative method, which will help to answer the

research questions and objectives. The next chapter will explain in detail the research chosen

method, procedures, sampling, data collection and analysis of this research.

73

Chapter 5: Methods

5.1 IntroductionThis chapter will identify both the qualitative and quantitative studies of the research. The

chapter will explain the purpose of the research methods, setting and sampling, procedures

and instrument. Additionally, it will explain how the data will be generated and analysed, and

it will explain the ethical aspects and the method validity processes.

The first phase of this research method was to conduct a preliminary study. The aim of

conducting the preliminary study is to add more confidence and soundness to the conceptual

model as well as the ability to identify factors and indicators associated with each stage and

the transitions in the model. These factors have already been touched upon in the literature

chapters, but in a less organised way. The conceptual model helped organise such factors and

indicators and had assisted in connecting and assigning each to the appropriate stage and

transition. The second part of this chapter will explain the quantitative study. It will highlight

the study domain and context, the scale development process, the final instrument, and all

ethical, data protection, validity and reliability concerns. Table 5.1 presents the stages and

process of the method used.

74

Table 5.15 Method Process

5.2 Preliminary Study5.2.1 Purpose of the preliminary study:

The review of the literature in Chapter 2 and3 has enabled the research to highlight factors

and elements that explain the different states of customer loyalty. The research then

elaborates more and assumes that loyalty consists of a series of levels that can be developed

75

Methods ProcessStage 1

Preliminary Study

Purpose Study design Sampling Strategy Size and Selection Interview Location Implementation Discussion and Analysis Themes Reliability Themes Identified

Stage 2

Developing the Survey Instrument Domain of the Construct Item Generation Q Sort Technique Q Sort Procedure Q Sort Results

Stage 3

Questionnaire Development Questionnaire Translation Pre-testing Sampling Procedure Questionnaire Administration

Stage 4Research Ethics and Data Protection

Stage 5Reliability and Validity of data

Stage 6Data Analysis Methods

over time both by the contributions of the business, and by the responses of customers.

Therefore, the conceptual model, which is proposed in this research, aims to make the

process of obtaining loyal customers for business much easier to adopt. To support this

conceptual model, the researcher has decided to conduct a preliminary study, which could

help to provide a clearer picture of the proposed model. Then, a semi-structured interview

was developed to gain a better understanding of people experiences and thoughts about

customer loyalty. The preliminary study is an exploratory study, developed with the intention

to know ‘what is happening’, and to have a broader understanding and thoughts about the

possibility of the development of customer loyalty. The interview follows the positivist

position, and it adapted the phenomenological position where the interview is seen as an

interpretative process and is fully focused on descriptions. (Nielsen, 2007)

5.2.2 The preliminary study design:

Semi-structured interviews fall under the general interview guide approach that helped the

researcher to ensure that the same general areas of information are gathered from each

interviewee, which gives more focus than the conversational methods, but still provides a

degree of freedom and flexibility in getting information from the interviewee (McNamara,

2009). There are different types of interviews such as focus groups, structured, semi-

structured and unstructured interviews. The researcher’s reason for adopting the Semi-

structured interviews was that, “semi-structured interview is flexible, accessible and

intelligible and, more important, capable of disclosing important and often hidden facets of

human and organizational behaviour” (Sandy and John, 2011. p246). In contrast, the

structured interview is where the interviewer asks interviewees a series of pre‐set questions,

permitting only a restricted number of answer categories, while the unstructured interview

process is developed according to the individual condition and context, aiming to make the

interviewee feel calm and unassessed (Sandy and John, 2011.). Before developing the

76

interview questions, the researcher has studied the nature and typologies of interviews

questions, which are presented in table 5.2 below.

Table 5.16 Typologies of interview questions

1. Introducing questions

2. Follow-up questions

3. Probing questions

4. Specifying questions

5. Direct questions

6. Indirect questions

7. Structuring questions

8. Silence

9. Interpreting questions

10. Throw away questions

Source: Adapted from Kvale (1996, pp. 133-5)

The interview is comprised of nine main open-ended questions followed by sub-questions.

Open-ended questions were used. As McNamara (2009) suggested, this type of questions lets

the participant talk more freely about their experience. Questions were developed, organised

and distributed in a way that would help the purpose of the interview. The interview was

designed to follow the idea of a timeline to test the development of loyalty over time, through

experiences and circumstances that suit every individual. The conceptual framework was

developed upon the understanding and interpretation of the literature in chapter 1, 2 and 3,

which has inspired the way the interview questions were made and written. Below is a table

5.3 presenting examples of the interview questions followed by explanation of their purpose.

Table 5.17 Example of Interview Questions

Examples of Interview Questions

Can you think of any tourism or hospitality

operation or business that you like very much?

How many times have you been there?

When was the first time you went?

When was the last time you went?

Can you tell me about the first time you went

there?

When did you visit?

What did you like about it?

Were there things you didn’t like?

How did you feel about the experience?

77

What made you come back?

Can you tell me about the second time you went there?

Can you think of a particularly positive

memory you have visiting here?

What was the occasion?

When was this in time?

Why was it so good?

How did it make you feel? Why?

Can you think of a time when you did not have

such a good experience?

What was the occasion?

Why was it not so good?

How did it make you feel? Why?

Can you tell me about the last time you went to

this operation?

In what ways do you think it has changed over

the time you have been using it?

In what ways has your relationship with xxxx

changed over this time?

How do you feel about xxxx now?

Do you think you will continue using xxxx in the

future?

Do you think by now you are noticed as a guest?

In what way and how?

The interview designed acquired the storytelling technique, which linked to the Narrative

Paradigm theory. This method serves well the purpose of the interview, which is exploratory.

Narrative Paradigm Theory, according to Walter Fisher’s 1989 interpretation “is a simplistic

application of storytelling, which follows a humanistic model of communication where

people breakdown complex knowledge into narratives that are shared among groups” (As

cited in Gill, 2011 .p 25). The interview was designed to start by identifying a tourism or

hospitality destination that the participant liked and regularly visit. Then the following

questions will be asked about the first, second visit and the last visit. The question then would

ask about the participant’s experiences and memories while using their preferred place, to

identify the things that crafted and shaped their experience, either positively or negatively.

78

Furthermore, questions were asked regarding the development of the place over time as well

as their relationships and feelings toward the place over time. These questions were asked to

understand the process and elements associated with the development of loyalty.

Additionally, questions asked regarding a competitor location to identify why they have

chosen their preferred one. Finally, questions were asked about how they promote and

recommend their preferred place to others as well as any feedback and recommendations they

have given the business over time. These questions aim to highlight the value and meaning

that the business has to them and how they transmit these messages to others.

5.2.3 Sampling Strategy:

Robinson, (2013) stated that it is important to, “holistically encompass the challenge of

sampling in interview-based qualitative studies: defining the sample universe, deciding on

sample size, selecting sample strategy and sourcing cases” (P 38). The first key to deciding

on qualitative sampling is defining the sample population. This process includes a series of

inclusion and exclusion criteria (Robinson, 2013). The researcher in this study has used the

inclusion and exclusion criteria by choosing participants according to their qualification to

the study and those fitting for the aim and purpose of the study and those who were willing to

share their experiences and stories related to the interview aims. Participants for the interview

were chosen carefully to serve the purpose of the interview. According to Creswell (2007), it

is essential that the researcher chose participants who are eager and will honestly share their

stories, information, and experiences, as well as experiences and stories that would represent

the main tourism and hospitality attractions, such as restaurants, resort, coffee shop and

tourist attraction. The researcher held face to face short meetings with potential participants.

The meetings helped to attract participants and to arrange times and location for interviews.

The researcher always gives his personal contact information in case of any unseen

79

circumstances and always attends one hour ahead of the interview to be sure about

everything.

5.2.4 Sample Size and Selecting strategy

The researcher followed the purposive sampling strategy for this study. The rationale for

employing a purposive strategy is that the literature that has resulted in the development of

the conceptual model and the main study question has served to decide on the participant’s

category, including that they must have of prior experience and knowledge to the topic

(Robinson, 2013). Cell sampling was also used since the researcher needed to make sure that

participants have different experiences from different tourism and hospitality businesses such

as hotels, restaurant, and coffee.

The sampling size for this study was low due to the purpose of the study, namely its aim to

see the possibility of the phenomenon of the development of customer loyalty. Thus, the main

reason for choosing only eight participants for this study was to ensure the ‘demonstration of

possibility’ (Leshan 1990). For this study, eight participants were approved having

demonstrated the possibility of the development of being a loyal customer over time and

highlighted the loyalty stages and transitions presented in the conceptual model. The

researcher also believed that he has reached saturation point at this number, as similar

responses and experiences kept coming up and nothing new was being added. Guest al.

(2006) stated that as little as six interviews may achieve data saturation. The interview has

indicated the development of customer loyalty and relationship with the business.

In recruiting participants for the interview, the researcher has adopted the extensive intimate

self-disclosure interview recruitment strategy for many reasons; it helps to acquire

individuals who are more open, more patient and more interested in the topic than the general

sample universe. Moreover, the researcher has recruited more female six to two due to their

80

expressed willingness to share their experiences and stories with the researchers (Dindia and

Allen, 1992).

5.2.5 Interview Location

The researcher gave the participant the option to select their most convenient time and

location so the participant can be more comfortable when conducting the interview. “It might

be easier to conduct the interviews with participants in a comfortable environment where the

participants do not feel restricted or uncomfortable to share information” (Daniel and Turner,

2010 p.757). The main issues with the interview sites or location were that one interview was

conducted in a very crowded and noisy coffee shop in Guildford, and when the researcher got

home and tried to transcribe the audio, he found it impossible due to the noise and

distributions while recording. Therefore, the researcher had to eliminate this interview and

work toward organising a quiet room in the Austin Pearce building for the rest of the

interviews. The table 5.4 below provides some of the participant's information.

Table 5.18 Participants Details

# Gend

er

Participants

Occupation

Age Types of

Experience

Interview Location Interview

Duration

Date

&time

# visit

1 F Administrator 54 Restaurant University of Surrey

(APb)

27.41

Minutes

20 Oct

10 am

5 times

last year

2 F Teaching

Fellow

40 Tourism Site University of surrey

(APb)

13.41

Minutes

19 Oct

11 am

+40 visits

3 M HR Employee 30 Bar and restaurant University of Surrey

(APb)

15.30

Minutes

18 Oct 4-5 visits

4 F Post Graduate

student

23 Coffee shop University of Surrey

(APb)

31.25

Minutes

20 Oct Almost

everyday

5 F IT employee 45 Hotel and resort Lake Side Coffee

(UoS)

15.25

Minutes

23 Oct

2 PM

5 times

6 M HR Employee 32 Bar and restaurant University of Surrey

(APb)

16.37

Minutes

20 Oct

12:30

pm

3 times a

year

81

7 F PhD Researcher 31 Coffee (Restaurant) University of Surrey

(APb)

26.36

Minutes

20 Oct

11 am

infinitive

times

8 F PhD Researcher 32 Restaurant University of surrey

(APb)

12.52

Minutes

24 Oct

1 PM

10in last

4 months

5.2.6 Implementation

The researcher conducted a pilot test with one participant who is an expert in research and the

field to decide if there were flaws, limitations or issues in the interview design and structure.

This gave the researcher the time and knowledge to make any necessary revisions before

conducting the main part of the study (Kvale, 2007).

The data collection instrument was mainly via a semi-structured interview that was developed

following the conceptual framework built upon the understanding of the literature review.

The Participants were given a summary and explanation of the aim of the research and were

asked to choose whether they would agree to the recording of the interview or not.

Interviews were conducted mainly in Guildford UK, around the main campus of the

University of Surrey. The average amount of time for the interviews was about 20 minutes.

All interviews were conducted face to face to have a better understanding of the body

language and other aspects as well to having direct interaction between the interviewee and

interviewer. Each participant has an experience related to the topic to talk about, and each

would need to agree to audio record the interview

5.2.7 Discussion and Analysis5.2.7.1 Data Analysis

Qualitative analysis falls into one of two categories: Content and thematic. Content analysis

is concerned with the evaluation of the frequency and saliency of specific text or phrase

whereas thematic analysis moves beyond counting explicit words or phrases and emphasises

on identifying and explaining both implicit and explicit thoughts. The content analysis has a

lack of in-depth investigation and understanding in comparison with the thematic analysis.

82

However, the Content analysis method is better in the sense of efficiency and reliability

because the analysis can be done by software whereas the thematic analysis involves

interpretation, which can differ from one researcher to another (Guest and MacQueen, 2008). 

Content and Thematic analysis can be data-driven based on grounded theory. The Data-

driven approach, the researcher prudently read and reread the data, searching for keywords,

identifying trends, assuming themes, before being able to analyse where the theory-driven

approach is directed by particular ideas, concepts or hypotheses the researcher needed to

evaluate and study (Namey et al. 2008). Conducting the interviews was the first stage and the

second was to transcribe all the interviews separately, which took approximately eight hours

for each one. An example of an interview transcript is included in Appendix B.

5.2.7.2 Thematic Analysis

The researcher chose the thematic analysis method in analysing and interpreting interviews.

Thematic analysis as Namey et al. (2008) indicated, “Moves beyond counting explicit words

or phrases and focuses on identifying and describing both implicit and explicit ideas. (p.138)

Thematic Analysis is considered the most appropriate for any study that seeks to discover

issues using interpretations. It provides a systematic element to data analysis and allows the

researcher to associate an analysis of the frequency of a theme with one of the whole content

(Alhojailan, 2012).

When identifying the level of themes there are two approaches that can be adopted, which are

the semantic or explicit level, also known as the latent or interpretative level. In the Semantic

approach, the themes are identified within “the explicit or surface meanings of the data and

the analyst is not looking for anything beyond what a participant has said or what has been

written whereas the latent approach goes beyond the semantic content of the data, and starts

to identify or examine the underlying ideas, assumptions, and conceptualisations – and

83

ideologies - that are theorised as shaping or informing the semantic content of the data”

(Braun and Clarke, 2006 p. 13)

The researcher used a thematic analysis procedure and built the theming process according to

the themes identified in the proposed conceptual model for this research. These themes are

represented by consistent quotes, expressions, or thoughts that were shared among the

research participants (Kvale, 2007). Analysing each interview, identifying quotes and

assigning them to the appropriate theme was based on the researcher’s analysis and

interpretation. There are six phases of qualitative analysis according to Braun and Clarke

(2006), which are described in Table 5.5.

Table 5.19 Phases of Thematic Analysis

Phase Description of the process

1. Familiarising yourself

with your data

Transcribing data (if necessary), reading and rereading the

data, noting down initial ideas.

2. Generating initial

codes:

Coding interesting features of the data in a systematic

fashion across the entire data set, collating data relevant to

each code.

3. Searching for themes: Collating codes into potential themes, gathering all data

relevant to each potential theme.

4. Reviewing themes: Checking the themes work in relation to the coded extracts

(Level 1) and the entire data set (Level 2), and generating a

“thematic map” of the analysis.

5. Defining and naming

themes:

Ongoing analysis to refine the specifics of each theme, and

the overall story the analysis tells, generating clear

definitions and names for each theme.

6. Producing the report: The final opportunity for analysis. Selection of vivid,

compelling extract examples, the final analysis of selected

extracts, relating back to the analysis to the research

question and literature, producing a scholarly report of the

analysis.

84

Adapted from (Braun and Clarke, 2006 p. 35)

5.2.8 Themes’ reliability and validity

In the Thematic Analysis method it is essential that the researcher assures that the ‘themes’

identified and presented in their analysis are being evaluated to ensure they represent the

whole meaning of the text (Alhojailan, 2012). According to Miles and Huberman (1994), the

validation process of themes must be done in the early and late phases of the research.

Furthermore, to build reliability and validity to the process of generating themes, the

researcher should involve an independent reviewer who will investigate and highlight themes

and then will compare them with what the researcher has. After that, the researcher should

have both identified themes and expose them to an outside reviewer to provide an overall

evaluation. In this research, the researcher asked two researcher who have good experience in

research to read some of the transcripts and then propose themes and he also involved them in

a verbal discussion about interviews wherein he compared themes and outcomes.

5.2.9 Preliminary Themes Identified

Table 5.20 Theme 1 Attracting& Acquiring

Theme 1 (Business Inputs) Sub-theme

Attracting and Acquiring 1- Quality of food and Choices

2- Price

3- Quality of setting

4- Services

Conducting semi-structured interviews has revealed some of the crucial factors related to

customer behavioural loyalty in the early stages. Customers first and second visits have

different elements that have an effect on the customer’s overall experience and intention to

revisit or express a level of loyalty. These factors are discussed in the literature reviews as

85

well as emerging from the interviews conducted. These factors as indicated in table 5.6 were

quality of food, setting, and service alongside with the prices and options available.

Quotes talk about the quality of food and choices:

“It made you feel that it’s a home-made food …it's not like chain food, it is not

like processes and yet the portion is really huge” (IN3)

“More authentic” (IN6)

“I loved the food … its Thai food which I like they had a lot of vegetarian options

which I liked” (IN8)

“This particular meal that I have, I just could not believe the taste sensation that I

was getting” (IN2).

Another common theme was price,

“It is a bit more expensive but you feel that with the quality of the food you feel

that they use good ingredients” (IN8)

“There was a good deal going on there was a good price so the second time there

was a good price”. (IN7)

A third sub-theme that emerged was the quality of the setting, which was expressed in a

range of different ways. Some people talked about the space, the convenience of the location,

the ambience, the atmosphere, and intimacy. Examples of these terms expressed by people

are:

“The atmosphere is just (that) everyone seems happy when you're there and it's

relaxed” (IN6)

“The cafe has a quiet ambience, the area was a quite large so nice that there's a

space between you and the table beside you know” (IN4)

“A very small intimate place, the ambience and the location the fact that it's small

and it's intimate” (IN2).

86

The fourth sub-theme that emerged was concerned with customer services, which were

described as being friendly, informal, chatty and nice. Examples are:

“Very friendly very informal” (IN1)

“The staff were friendly they were chatty” (IN 5).

Table 5.21 Theme 2 Behavioural Loyalty

Theme 2 (Customer outputs) Sub-theme

Behavioural Loyalty 1- Visit

2- Intention to visit

3- Referral

4- Promotion

Customers at this stage expressed and practised a behavioural loyalty that was developed and

derived from the business inputs and efforts in the first transitions. The Sub Themes table 5.7

within behavioural loyalty mentioned and identified in the interviews are the actual visit, the

intention to visit, level of referral and promotion. Example of the actual visit and intention

to visit are:

“I've been there five times in the past twelve months” (IN2)

“Great I wanted to be there again sometime soon” (IN8).

The third sub-theme that emerged was referral where a customer recommends others visit.

Examples are:

“I love it and I would continue to recommend it” (IN2)

“The first time I went there was actually upon a recommendation of a friend of

mine” (IN3).

The fourth sub-theme is customer promotion and here are some quotes,

“TripAdvisor we put a comment on its snaps on (Wrote good comments)” (IN7)

87

“Using Facebook and WhatsApp (Promoting the business and saying good

things” (IN1)

Table 5.22 Theme 3 Engagement

Theme 3 (Business Inputs) Sub-theme

Engagement 1- Interpersonal interaction

2- Interpersonal relationship

3- Attentiveness and Knowledgeable

As customer return to the same establishment a number of times, they are exposed to more

close interaction and engagement with the business. This engagement in table 5.8 should

develop and strengthen their bond and relationship with the business. In this theme,

customers expressed four main business practices that have had an impact on their experience

and relationship. These are interpersonal interaction, interpersonal relationships, and

employee attentiveness and employee knowledge. Quotes that emerged from the interviewees

were as follows: for interpersonal interaction

“The staff ...They’re very nice very polite always check you were OK didn't try

to oversell you things” (IN8)

“I have got to know some of the staff, they have young people helping with the

service and also they pick up the animals and they say you know to come and

help the children and hold the animals the staff are always friendly always nice”

(IN1).

Interpersonal relationship examples are,

“We ended up being I could say friends or so like an acquaintance, they know my

name I know their names. I've been always welcome to get into the place” (IN3).

“when I enter they start waving hi how are you doing where do you want to set

today they all knew me like even when sometimes like I spend three days then I

88

go on the fourth there where have you been you didn't come for the last four

days” (IN4)

The third sub-theme is employee attentiveness and knowledge

“They’re very attentive they listen so yeah they were good” (IN6).

“They were just very knowledgeable about their food. They knew their product

very well we had a few questions about the food” (IN8)

Table 5.23 Theme 4 Emotional Attachment

Theme 4 (Customer outputs) Sub-theme

Emotional Attachment 1- Memories associated

2- Deep feelings

3- Passion and Ethic

4- Connection

Customers who were categorised earlier as behaviourally loyal customers and were able to

have a satisfactory level of engagement with the business should now move to the level of

emotional attachment to the business and the people running it. The interviews have

identified some of the main indicators and factors associated with customer emotional

attachment as noted in Table 5.9. These indicators and factors are the development of special

memories, deep feelings expressed toward the business or inside the customer’s heart,

customer passion, ethic as well as a sense of connection. The following are some of the

quotes expressed by the customers who were interviewed; for memories associated

“It is associated with a good time and I have been there with friends I have taken”

(IN8)

“I and my fiancée took her mom and dad their I think a joint birthday and the fact

that they enjoyed it so much made me feel good about taking them” (IN6).

The second indicator is the development of deep feelings

89

“Everybody was so helpful and nice it just made you did feel that part of the

family in the end so we've been going back” (IN7).

“staff and themselves they are really caring this is what like attracted me to this

place and I believe I became so loyal to that place because like I saw them they

really care about the customers and their customers being comfortable staying at

their place” (IN5)

The third is customer passion and ethics that match the business

“Somebody whose main passion in this life in this world is the respect and

rehabilitation and rehoming of animals” (IN2)

“I am very attached to this place yeah because of my ethics” (IN2).

The fourth is the sense of connection expressed by:

“I feel connected to the place in a way that I know those people I know what

they're doing” (IN3)

“my son also never wants to leave he cries every time we leave but to me, it's

great because you know they're safe and it's clean”(IN1).

Table 5.24 Theme 5 Value Creation

Theme 5 (Business Inputs) Sub-theme

Value Creation 1- Meeting personal requirement

2- Meaning and Education

3- Events

4- Loyalty reward

Once the customer reaches the stage of emotional attachment, the business would, by then,

know them better and would be able to personalise the service and develop special practices

for them in order to strengthen their bond to the business. Business is expected to develop

and offer things that create value for customers as explained in Table 5.10. Some businesses,

as expressed in the interviews, are offering their customers some special practices such as

90

meeting customer requirement, providing events and more meanings as well as the educating

customer. Example of meeting personal customer requirement,

“I felt welcome I felt that Like they would do things for me that they wouldn't do

for someone else like they would serve me dinner menu when it's still morning

and even the chef was fine to do things” (IN2).

“they developed a new area and it's like tractors and diggers and its brand new

and the children go in they just love it and it just makes you so happy” (IN1)

Meaning for the customer as expressed in the interview

“It was kind and nice to feel that somebody is interested in you and about really

doing. You know and that made me go there I just felt comfortable” (IN3).

“It was like I say it is different and It's nice to support smaller chains that are you

know independent restaurants and in the face of all these huge ones opening

around the less personable” (IN5)

“I believe that it's educating other people and promote respect for animals” (IN

2).

The third sub-theme emerging was events

“They’re creating events that are bringing the community together” (IN2).

“Have the whole venue to myself booked the whole venue they could theme it so

whatever I wanted you” (IN2)

The fourth sub-theme emerged from the interviews is loyalty reward,

“Have this reward scheme thing where you collect point as per of the number of

meals” (IN3).

Table 5.25 Theme 6 Affective Commitment

Theme 6 (Customer outputs) Sub-theme

Affective Commitment 1- Continuation

2- Advocacy

91

3- Invitation

4- Support

Customers who have reached the stage of emotional attachment, and have been recognised by

businesses by creating value for them, can be considered to be moving up to the stage of

affective commitment. This stage of loyalty can be identified by some of the customer’s

actions such as the continuation of doing business, a higher level of advocacy, invitations,

and support as stated in Table 5.11. In the interviews, customers expressed and highlighted

these indicators within the following quotes. The first sub-theme emerged from the

interviews is continuations,

“We’re going there all the time and I think it's really great. The first time I went

on my own the next time I told my friends” (IN1).

“I just remember going in there feeling settled enjoying food and knowing that I'd

definitely go back there again” (IN6)

The second sub-theme emerged from the interviews is advocacy

“I promoted I just say it's good authentic Thai food and it just gets you away from

everyday life for a little bit”(IN4)

“When I told them about it I would it was like the coffee is really good and they

have like a variety of options of the dessert so that’s why that’s how we started

going there and every time” (IN3)

The third sub-theme emerged from the interviews is Invitations,

“Because we as a couple enjoyed it so much and we thought we share with

somebody else” (IN6).

“I invited people to go in Guildford I just wanted them to feel what I feel like I

wanted them to know that there is this place where this good food and those very

very amazing and nice people exist in Guildford and I think the place itself like

the operation itself really deserves to be known”(IN3)

92

“I take all my friends with me” (IN7)

The fourth sub-theme emerged from the interviews is customer support,

“It is nice to support independent retailer like that and a family and they quite

friendly” (IN5).

“It's not a chain it feels nice that a bit more local” (IN8)

Table 5.26 Theme 7 Recognition and Appreciation

Theme 7 (Business Inputs) Sub-theme

Recognition & appreciation 1- Genuine care

2- Treatment

3- Valuing event

Customers at this stage deserve to be recognised and appreciated. Those customers are those

who were identified as being emotionally attached and as having an affective commitment in

the earlier stages. At this level, businesses need to react and deal specifically with those

customers because they are their most valuable assets. As highlighted in the interviews,

businesses need to express genuine care to their customer, provide special treatment and

should value customer’s special events as well as offer loyalty rewards, as stated in Table

5.12. The following are examples of customer quotes who were interviewed, the first sub-

theme emerged from the interviews is genuine care,

“Friendly you know they were like they smile they're happy to see you they

happy that you are there. You know they Welcoming they very honest about their

food and you know it is genuine they care for your custom” (IN5)

“They remember and it made you feel special it makes you feel like they are

interested” (IN7).

The second sub-theme that emerged from the interviews is treatment,

93

“Staff is good they're friendly they always about you and things like that the staff

of always been attentive they're always good” (IN6)

“Sweet and the upgraded us as well very nice so that was a positive thing yes they

did not need to do that” (IN7).

The third sub-theme emerging from the interviews is valuing customer events,

“Value for the society and the local community that occasionally they do things

that bring the community together on bones” (IN2).

“we went over for friends anniversary who have booked a place over there they

also asked for a party for those people who went originally for the wedding so we

went so we did the anniversary it was quite nice and then we had one of our

friends came with us we had a birthday party in the hotel and then it just nice”

(IN7)

Table 5.27 Theme 8 Belonging

Theme 8 (Customer outputs) Sub-theme

Belonging 1- Part of the operation

2- Feeling associated

3- Strong advocacy

4- Making Business

According to the conceptual model, customers have reached the level of a lifetime loyal

customer. Customer reach this stage by experiencing most of the earlier stages and transitions

over time and, through the businesses inputs, have developed a great and robust bonding,

attachment, commitment that has led them to the stage of belonging, where they start to feel

and act as a part of the business and operation as well as showing other practices and feelings.

This study has identified four main factors and outcome associated with the stage of

belonging. These four factors and indicators (See Table 5.13) are the sense of being part of

94

the operation, special feeling, and stronger level of advocacy as well as bringing business to

their liked places. Quotes from interviews that support these are,

Part of operation,

“I've reached to the extent that I seat myself I serve myself and I pick up things

from myself, wow and there were like they would talk me through what's going

on what I'm doing like the most time” (IN3)

“makes you feel welcome makes you feel like you're a part of their experience

and not just come in and eat your food and you go again”(IN5)

Example of feeling associated,

“It feels like home, home I used to wear anything” (IN4)

“It's familiar you feel well looked after” (IN5).

“Time I felt like this is the only place I would go for in Guildford because of the

people I think more than anything else” (IN2)

Third strong advocacy

“I share the pages of Facebook we have a WhatsApp group for my local mom

friends and we all talk about it” (IN1)

“I'm going to advocate for the place and I think I'm going to stand For it because

in my point of view this is the least you can do for such a place like I wouldn't

take anyone talking badly about”(IN3)

Fourth making business

“Let’s go there it's really good so we went with family friends local friends and

we all went and you know so I took a business there” (IN, 1)

“Taking customer there and bringing friends there and telling people about this

taste” (IN2)

95

5.2.9 Preliminary Study Conclusion and Outcomes

The customer loyalty antecedents and outcomes as discussed in the literature, as well as the

current practices of businesses, are not well connected and are not noticeably described and

explained. It is indicated in this research aim customer loyalty can be more achievable and

understandable for businesses. The level and state of customer loyalty can vary from one

customer to another and as this research has discussed can have a number of different stages.

Businesses need to understand what moves customers from one stage to the other and in the

first place where a customer actually is in the range of loyalty stages. The preliminary study

highlights some of the most important factors that have added to customer experiences,

satisfaction, and loyalty.

The main outcome of the preliminary study is a further refinement of the conceptual model

proposed in this research that can help businesses to understand their customers better and

help them to concentrate on practices and cultures that matters to their customers. Through

the interviews, a number of sub-themes have been identified supporting the key themes

developed for the conceptual model earlier. These have now been incorporated into the model

shown in Table 5.14 below.

Table 5.28 Outcomes from the Preliminary Study

Business efforts in Transition Customers Loyalty Stages

Customers Outputs

1- Attracting & Acquiring• Quality of food and

Choices• Price• Setting• Service

1- Behavioural Loyalty VisitIntention to visitReferralPromotion

2- Engagement• Interpersonal interaction• Interpersonal relationship

2- Emotional Attachment Memories associatedDeep feelingPassion and ethicconnection

96

• Attentiveness and Knowledgeable

3- Value Creation• Meet personal requirement• Meanings and Education• Events• Loyalty reward

3- Affective Commitment ContinuationAdvocacyInvitationSupport

4-Recognition & appreciation • Genuine care• Treatment• Valuing event

4- Belonging Feeling associatedPart of the operationStrong advocacy business

5.3 Developing the Survey instrument

5.3.1 Scale and Item Development

This study will follow the steps of scale development provided by Churchill (1979) and Hinkin et al. (1997):

Specifying the domain of the construct; Item generation; Content adequacy assessment via Q Sort Technique Questionnaire development; Pre-testing; Pilot study; Sample size determination; and Questionnaire administration

Source Adapted from (Lockwood, and Pyun, 2017, P 4)

5.3.2 Study Domain of the Construct

This research will mainly focus on the hotel industry on the basis that hotels are a facility that

welcomes tourists and guests and offers a variety of services and products such as rooms,

events, conferences, food, drink, and spas. In the hotel, there is an excellent opportunity to

examine the proposed conceptual model that highlights the development of customer loyalty.

97

Hotels have an environment that can assure the occurrence of the four transitions that

represents the business effort in developing their customer loyalty such as interactions,

engagement, personalization and recognition. Furthermore, hotels can easily capture the

customer stages of loyalty by indicating and highlighting behavioural loyalty, commitment,

attachment and sense of belonging. These four stages and transitions were fully explained and

addressed in the literature chapter. The following table presents the eight proposed

dimensions:

Loyalty Stages and Transitions

Business efforts in Transition Customers Loyalty Stages

1- Attracting & Acquiring2- Engagement3- Value Creation 4- Recognition & appreciation

1- Behavioural Loyalty2- Emotional Attachment3- Affective Commitment 4- Belonging

5.4 Item Generation

The researcher followed the process of deductive scale development using two main sources

of items. The first item was provided after an extensive review of the literature about the

proposed four stages of loyalty and the four transitions that support the development of

loyalty. The researcher has extracted from the literature a large number of statements to

assign to each stage and transition. The second source was from the preliminary study. The

researcher conducted semi-structured interviews to explore the development and

strengthening of customer loyalty. The study was developed based on the understanding and

interpretation of the literature review and its main aim was to discover if this phenomenon as

98

proposed exists in the customer’s mind. The study explored the four stages and four

transitions and came up with similar items that were identified from the literature review (see

Appendix C and D for all the statements.

The researcher has adapted the statements to fit the purpose and meaning of each category

from existing scales. The existing scale items were refined in order to have statements that fit

with the context of the study and were suitable for use with the proposed Likert scale. In

order to develop and shape statements that will correctly describe the stages and transitions of

the development of customer loyalty in the hotel industry, the researcher and two of his PhD

supervisors were heavily involved in this stage. Additionally, the statements were presented

to a group of students and others who were cognisant of the topic and were asked to assign

each statement to the category they felt it best belonged. From this activity, the researcher

had a series of statements or items for each of the four stages of loyalty and their four

transitions.

5.4.1 Content adequacy assessment via Q Sort Technique

Q methodology is a resource for extracting subjective viewpoints (Cross, 2004) and was

originally conceived and established by William Stephenson in the 1930s (McKeown and

Thomas 1988). Q Sort Technique is a useful technique within the domain of Q methodology,

which was used to pre-test the items in this study by asking participants to decide what is

meaningful and important from their perception and asking them to evaluate the statements

and then assign them between the eight categories (Coogan, and Herrington, 2011). The

participants at this stage were a group of PhD student from the School of Hospitality and

Tourism Management at the University of Surrey, together with people with an academic

99

background and those who had adequate experience and knowledge of the topic (Brown,

1980).

The Q Sort technique is considered to be the proper method for this research at this stage. The

research explores the concept of loyalty in the different and unique way and it suggests there

are four dimensions that represent the stages of loyalty and four dimensions that represent the

transitional, which indicate business efforts. Participants were given a minimum of 90

statements representing all eight stages and transitions of the development of customer

loyalty. Statements were presented in random order and participants were provided with a

description for each stage and transition that explained it. Participants were asked to review

the statements and assign them to their appropriate stage or transition. The outcome of the Q

sort exercise was stored in tables in a word document file for analysis purposes. The analysis

determined the level of similarity between the evaluation and decisions of the participants

and the previous work done by the researcher.

5.4.2 Q Sort Procedure

The Q methodology intends to highlight some of the key perspectives that are favoured by a

specific group of participants (Watts, and Stenner, 2005). The development of the Q

methodology by William Stephenson in the 1930s “emerged from his desire to bring a

scientific framework to bear on the elusiveness of subjectivity” (Coogan, and Herrington,

2011.p 24). Q-sort required the participants to indicate what is meaningful and important

from their viewpoints (Coogan, and Herrington, 2011). Participants for this study were

provided with a set of statements and descriptions of each category and were briefed on how

this method works. They were asked first to read all the category descriptions and then to

allocate all the statements to the appropriate category of those provided. Forty participants

were acquired for this study in two sessions, which was believed to be enough for the

100

research at this stage. According to Watts, and Stenner (2005), large numbers of participants

are not necessary for a Q sort study as “It probably does this most effectively when the

participant group contains between 40 and 60 individuals” (Watts, and Stenner, 2005, p79).

In this study, the total participants were 40, 20 of whom were involved in the first stage and

the other 20 were acquired in the second stage. The majority of the participants have a

background in the hospitality industry. 36 participants were PhD candidates and the other 4

were teachers and researchers. 40% of the participants were male and 60% were females. The

researcher had arranged several meeting with his PhD supervisors prior to this process. They

had discussed the statements chosen, the category descriptions, the setting and participants.

They had agreed upon the types of participants, the location for the study and the way

statements and descriptions would be presented as well as discussed the method of acquiring,

briefing and getting feedback from the participants after the process.

The researcher asked all potential participants individually, gave them brief explanations

about the Q sort technique and asked if they agreed to participate, the researcher allocates

time and locations that would suit them best. The researcher piloted the method himself in

order to have a time estimation for the process and asked one participant to do a trial run to

explore any difficulty or misunderstandings. The time for this process was estimated between

20 to 30 minutes. The researcher used a number of different approaches such as a big

meeting room with a round table that accommodated ten participants at once and asked his

PhD supervisor Professor Lockwood to attend; a smaller room for 6 participants; and in some

cases a room for individuals.

At the first stage of the study, 20 participants were involved. There were two groups: one was

provided with 41 statements that represented the four categories of the loyalty stages. These

stages state the customers’ feelings for and reactions toward their preferred hotels. The other

101

group was provided with 51 statements that represented the four transitions of loyalty. These

transitions stated the business practices used to recruit and retain customers. Each participant

was provided with five envelopes, one envelope containing all the individual statements

clearly printed on small pieces of paper, which were randomly placed in the envelope. The

other four envelopes were empty and each one had one full description of one of the

categories (Stages or Transitions) on the front. As Cross (2004) states “The Q set is randomly

numbered, put onto cards, shuffled and offered to participants who are asked to use them to

model their view or account by sorting them into categories” (p.209).

Participants were given an explanation of how this method works and were asked to place all

the envelopes in front of them and then read and understand each category by reading the

descriptions placed on the envelopes and then take the envelopes that contained the

statements and pull out statements one by one. Participants were asked to read the statement

carefully and then place it in the envelope that they think it belongs to the most. Once they

finished they returned all envelopes to the researcher with their number written on the main

envelope. The researcher asked all participants for their feedback and suggestions. There

were no major issues reported regarding the process. All feedback was taken and used when

developing the second stage, such as revising some of the category descriptions. Many

participants enjoyed the Q sort technique and expressed their interest in learning more about

the method in the future.

The researcher recorded each participant’s outcomes separately and first developed a table

that showed the participant number and assigned his or her results to the category columns.

After recording all the participants’ results a further table was constructed to show all the

statements and the percentage of participants who allocated the statement to each category as

shown in Appendix C and D.

102

The researcher then evaluated each statement by reviewing the percentage agreement of the

participants in their allocations to each category. Due to the nature of this study and the

similarity level between the stages and the transitions used, the researcher did not follow the

simple 60% approval rate that was used by Ekinci and Riley (2001) but instead, having

discussed this matter with his PhD supervisors a 50%-30% rule was used. This meant that

each statement had a 50% and above agreement among participants of being in its most

appropriate category, combined with not being assigned by more than 30% of participants to

a different single category was accepted at the first round of the study. In the first round,

there were 11 statements from the loyalty stages and 22 statements from the loyalty

transitions that reached this level and that were accepted. The remaining statements were then

amended prior to the second round of categorisation.

Before the second staged was performed, the researcher, with the advice of his supervisors,

further refined or reworded some of the remaining statements and category descriptions.

These changes were made due to the participant’s feedback in the first study. In the second

stage of the study, 20 participants were acquired. As in the first round, there were two groups

of statements. The first group has 28 statements representing the stages of loyalty and 31

statements representing the loyalty transitions.

In the second round, there were 17 statements in the loyalty stages and 6 statements in the

loyalty transitions that did meet the 50-30% criteria. In addition, there were 9 statements that

had a sufficient level of agreement to transfer them to a different category than originally

proposed. The researcher also eliminated four statement in the second round due to their

duplicating with other statements. The total accepted statements for the loyalty four stages,

was 29, and for the four loyalty transitions was 36. Exceptionally, one statement was

accepted which has only 40% approval. The reason here was that the researcher believes it is

essential to be in the study as it explains a very important aspect of customer affective

103

commitment. The complete set of results and the modifications carried out during the first

and second rounds of the study can be found in the Appendices B and C.

This study was not an easy task for the participants due to the similarities between the

categories and statements. It is not an easy task to differentiate between some of the aspects

of for example affective commitments, behavioural loyalty, and emotional attachments etc.

However, the Q Sort technique has provided a degree of confidence that the proposed

categorisation is robust and it can now be used to develop the main instrument.

5.4.3 Q Sort ResultsBelow are presented the final result of the Q-Sort.

Loyalty Stages

Statements accepted from the first round

Statements accepted from the second round

Transfer from a different category

Statements rejected

Statements Behavioural Loyalty % Agreed1. I recommend this hotel to someone who seeks my advice 70%2. I consider this hotel my first choice to stay in 80%3. I am happy with the service I received 60%4. I say positive things about this hotel to other people 70%5. I suggest friends and relatives to do business with this hotel 60%6. I would do more business with this hotel in the next few years 30%7. I have developed a positive feeling about this hotel 10%

Statements Emotional Attachment % Agreed1. The employee(s) in this hotel make(s) me very happy 80%2. When I am dining alone, it is not awkward to eat at this hotel

because the employee(s) is/are friendly and sociable with me50%

3. At times when I stay in other hotels and have some trouble or difficulty, the employee(s) of this hotel come to mind

50%

4. I have positive memories associated with this hotel 80%5. If someone praised the employee(s) in this hotel, I would feel

pleased60%

6. When I receive service from the employee(s) in this hotel, I feel 80%

104

that I can trust him/her/them completely7. I have a passionate interest in the employee(s) in this hotel 50%8. When I feel depressed, the employee(s) provide(s) me with comfort

during the process of serving me in this hotel.60%

9. When I place an order in this hotel, I have faith in the employee’s advice/suggestions.

60%

10. I would feel sorry if the employee(s) in this hotel quit his/her/ their job(s).

70%

11. I am willing to pay more for the hotel services 50%12. I have a pleasure dealing with this hotel 40%13. The hotel ethics represents me 40%

Statements Affective Commitments % Agreed1. I have the desire to maintain the relationship with this hotel 60%2. I am willing to make a sacrifice to continue this relationship 60%3. I have developed a positive relationship with this hotel 60%4. Doing business with this organization makes me feel good 50%5. I care about the success of this service organization 50%6. I am proud that I use the services of this hotel (40%) 40%7. I want to help this hotel achieve its goals 40%8. I usually agree with this hotel’s policies and procedures on

important matters20%

9. This hotel inspires the best in me in the way of being a good customer

20%

10. The longer I stay with this hotel, the harder it is to switch to another 30%

Statements Belonging CCB % Agreed1. I have assisted other customers when they needed my help 70%2. I have taught other customers to use the service correctly 70%3. When I have had a useful idea on how to improve service, I let the

service provider know70%

4. When I have had feedback about the service, I filled out a customer survey form

70%

5. I have informed the service provider about good service received from individual employees.

80%

6. I have put up with it when the service was not delivered as expected 50%7. I want to help this hotel achieve its goals ( transfer from AC) 60%8. I have been patient and waited for the employee to recover from a

mistake30%

9. I have adapted to the situation when I have waited longer than I expected to receive the service

40%

105

Loyalty Transitions

Statements succeeded from the first test

Statements succeeded from the second test

Transfer from a different category

Statements rejected

Statements Attract and Acquire % Agreed

1. The front desk was visually appealing 80%

2. The employees had clean, neat uniforms 90%

3. The hotel atmosphere was inviting 90%

4. The outdoor surroundings were visually attractive 80%

5. The hotel was bright and well lighted 100%

6. The hotel’s interior and exterior were well maintained 90%

7. I got what I paid for 90%

8. Employees were willing to answer my questions 50%

9. Room service was prompt 80%

10. The hotel provided a safe environment 90%

11. Charges on my account were clearly explained 80%

12. I received good attention at the front desk 50%

13. Employees responded quickly to my requests 30%

14. Employees treated me with respect 30%

15. Reservationists tried to find out my particular needs 20%

Statements Customer Engagement % Agreed

1. Service providers teased you in a friendly way 60%

2. Service providers Employee told you something personal about

themselves

60%

3. Service providers directly answered your questions 50%

4. Service providers have been sympathetic to you concerning a

problem with a product or service

70%

5. Service providers listened carefully to what you had to say 50%

106

6. Service providers showed a genuine concern for your well being 50%

7. Employees responded quickly to my requests (From A.A) 60%

8. Given warm “goodbye” after checking out at the counter (From

R.A)

50%

9. Feelings of affection build between me and the receptionist after a

few visits (From P.V) First round

60%

10. Service providers discussed my personal likes and dislikes 0%

11. Service providers Employee encouraged you to say something

personal about yourself

40%

12. Service providers used good manners in your presence 30%

13. Service providers seemed appreciative/thankful 30%

14. Service providers acknowledged your presence 20%

15. Service providers apologized if something was not satisfactory 0%

16. Service providers have great knowledge about the service and

product

30%

Statements Personalization and value creation % Agreed

1. Service providers remember the guest’s preferences 70%

2. Service providers make the guest feel really special 50%

3. Hotels offer guest the opportunity to co-construct their experience 70%

4. Hotels offer individually customized services 70%

5. Reservationists tried to find out my particular needs (From A.A) 50%

6. Service providers discussed my personal likes and dislikes (From

C.E)

60%

7. The service provider in charge of my account remembers birthdays

and anniversaries (R.A first round)

60%

8. Understanding my special requirements while staying in a hotel

(A.R first round)

60%

9. Service providers give that bit extra by going beyond what is

expected

20%

10. Service providers show sincere interest in the guest’s specific needs 40%

11. Service providers are genuinely concerned about making the guest’s

stay as comfortable as possible

40%

107

12. The guest is confident the service provider will attend to any special

need

40%

13. Feelings of affection build between the guest and the receptionist

after a few visits

0%

14. Hotels care about customer events 50-50%

15. Hotels offer a special reward for loyal customer 10%

Statements Recognition And Appreciation % Agreed

1. Presented with an unexpected welcoming token or gift 70%

2. The hotel staff knew my name and/or nationality 50%

3. The hotel staff treated me with full respect 50%

4. The hotel made me feel like an important person 60%

5. Hotels care about customer events (P.V) first round 60%

6. Hotels offer special rewards for loyal customer (P.V) 60%

7. The service provider in charge of my account remembers

birthdays and anniversaries

40%

8. The hotel staff knew my name and/or nationality 10%

9. The hotel staff gave me authentic smiles all the time 10%

10. Understanding my special requirements while staying in a hotel 30%

11. Building a good relationship rather than making money seemed to

be the most important drive of the hotel

10%

12. Given warm “goodbye” after checking out at the counter 20%

13. Entertained with the services provided by the hotel 10%

14. Treated as a friend rather than a customer 30%

The use of the Q-sort technique has helped the researcher to be more confident about all the

statements used in this study. The researcher thus had a clear picture of the overall look of the

final instrument for the study. During the process of the Q-sort, the researcher has learned

more about each category and has seen the way people think and understand each statement.

Participants were free to allocate each statement to wherever they think it belongs to the

most. The researcher was able to assign a number of items to each category and switch some

108

to a different category than their main ones after exploring the result of this process. Now the

research is ready to go to the second stage, which is the development of the questionnaire.

5.5 Questionnaire Development

At this stage of the scale development, the researcher was able to develop the study

questionnaire after conducting the Q sort technique that helped in refining, shaping and

sorting the questionnaire items. The questionnaire was designed after the results and

outcomes of Q methodology and the researcher was able to retain 64 statements in total (29

for the loyalty stages and 35 for the transitions).In the questionnaire there are two main

phases of the research, The first phase examines the loyalty transitions which point out the

business efforts and practices that support the development of loyalty and the second phase

explores the stages of customer loyalty which represent the customer’s outputs and reactions

to the business efforts. With these two phases, the final and refined statement built upon the

Q test were presented to the participants and they were asked to indicate what they feel about

each statement at a five-point Likert scale (one being ‘strongly disagree’ and five being

‘strongly agree’). The questionnaire has two sections; section one starts with questions about

whether the customer has a preferred hotel or not and their actual visit. The last section

highlights the customer’s socio-demographic characteristics that include participants’ gender,

age, occupation and level of education and others. The first draft of the questionnaire is

presented below.

QUESTIONNAIRE

All statements were randomly ordered using excel. Please see Appendix (E)

Hello, my name is Thaib Alharethi, a PhD researcher at the University of Surrey conducting research on the development of customer loyalty in the hotel industry. This research is a major requirement of my PhD degree. Please answer all the questions provided in this questionnaire as best as you can. All information provided will be

109

anonymised. Filling the questionnaire will take about 15 minutes. If you need to contact the researcher regarding the questionnaire, please feel free to contact me via email t.alharethi@surrey.ac.uk Thank you.

When answering all the questions below, please think of a hotel that you like and would prefer to stay in.

Please indicate the type of hotel? 1. Independent 2. Chain Hotel Name ………

How long have you been using it? Less than a Year 1 year 2 years More than 2 years

How many times have you stayed there? 1- 5 times 6- 10 times More than 10 times

What is the main purpose of your travel? Business Leisure Visiting friends and family Other

How was your last or current stay overall experience? Positive Neutral Negative

Section A: This section examines your feelings toward the service offered by this business.

Please choose your favoured answer by marking [√] once for each statement

Statements 1 2 3 4 5 6 71. The outdoor surroundings were visually attractive2. Service providers remember my preferences3. Employees were willing to answer my questions4. Service providers teased me in a friendly way5. Reservationists tried to find out my particular needs6. This hotel offers special rewards for loyal customer7. Employees responded quickly to my requests8. Service providers told me something personal about

themselves9. Charges on my account were clearly explained10. The front desk was visually appealing11. Service providers discussed my personal likes and

dislikes12. Feelings of affection have built between me and the

receptionist after a few visits13. The hotel staff treated me with full respect14. Service providers listened carefully to what I had to say15. Service providers have been sympathetic to me

concerning any problems with a product or service16. The hotel staff knew my name and/or nationality17. The employees had clean, neat uniforms18. The hotel made me feel like an important person19. Service providers showed a genuine concern for my well

being20. The hotel offered me the opportunity to co-construct my

experience

110

Please indicate your feeling toward each statement – using a scale of 1 to 7, where 1 = strongly disagree; 2 3 4 5 6 and 7strongly agree.

21. The hotel atmosphere was inviting22. The hotel provided a safe environment23. The hotel’s interior and exterior were well maintained24. The hotel was bright and well lit25. I was given a warm “goodbye” on checking out26. The hotel offers me individually customized services27. I received good attention at the front desk28. Service providers directly answered my questions29. My special requirements are understood while staying in

this hotel30. Service providers make me feel really special31. The hotel cares about customer events32. The service provider in charge of my account remembers

birthdays and anniversaries33. I was presented with an unexpected welcoming token or

gift34. Room service was prompt35. I got what I paid for

Section B: This section examines your response and action toward your preferred business

Please choose your favoured answer by marking [√] once for each statement

Statements 1 2 3 4 5 6 71. I have put up with it when the service was not delivered as

expected2. When I have a useful idea on how to improve service, I let

the service provider know3. When I place an order in this hotel, I have faith in the

employee’s advice/suggestions.4. I am happy with the service I received5. The employee(s) in this hotel make(s) me very happy6. I always fill out the customer survey form7. I have developed a positive relationship with this hotel8. I have a passionate interest in the employee(s) in this hotel9. I have taught other customers to use the service correctly10. I have assisted other customers when they needed my help11. When I feel depressed, the employee(s) provide(s) me with

comfort during the process of serving me in this hotel.12. When I am dining alone, it is not awkward to eat at this

hotel because the employee(s) is/are friendly and sociable with me

13. At times when I stay in other hotels and have some trouble or difficulty, the employee(s) of this hotel come to mind

14. I suggest to friends and relatives that they do business with this hotel

15. I consider this hotel my first choice to stay in16. I would recommend this hotel to someone who seeks my

advice17. I have informed the hotel about the good service I have

received from individual employees.18. I say positive things about this hotel to other people

111

Please indicate your feeling toward each statement – using a scale of 1 to 7, where 1 = strongly disagree; 2 3 4 5 6 and 7 strongly agree.

19. Doing business with this hotel makes me feel good20. When I receive service from the employee(s) in this hotel, I

feel that I can trust him/her/them completely21. I have positive memories associated with this hotel22. I am willing to pay more for this hotel23. I want to help this hotel achieve its goals24. I care about the success of this hotel25. I would feel sorry if the employee(s) in this hotel quit

his/her/ their job(s).26. I have the desire to maintain my relationship with this hotel27. If someone praised the employee(s) in this hotel, I would

feel pleased28. I am proud that I use the services of this hotel 29. I am willing to make a sacrifice to continue this

relationship

Section C: Socio-demographic Characteristics

Please choose your answer by marking [√] once for each statement

1 What is your Gender 1-Male 2. Female 2 What is your Nationality ……………….3 What is your marital

status?1. Married 2. Single 3. Other ………

4 Your level of education 1. High school 2. University/College 3.Postgraduate 4.Other (specify)…………………

5 What is your age? ……………….

Thank you for your valuable time

5.5.1 Questionnaire Translation

The researcher arranged an official meeting with his main and co-supervisor to go through

the questionnaire style, language and content. They agreed that the survey was ready for the

second stage, which is the translation stage. They discussed and agreed upon the translation

strategy proposed by the researcher. The researcher aimed to translate the main survey from

English to Arabic due to the sampling strategy for this research. The researcher maintained

and fulfilled the requirements for translation survey research which were stated by Harkness

et al. (2010) A successful survey translation is expected to “keep the content of the questions

semantically similar; within the bounds of the target language, keep the question format

similar; retain measurement properties, including the range of response options offered; and

112

maintain the same stimulus. Such matters as burden and form of disclosure are also meant to

be kept constant” (As cited in Behr, 2018. p.7).The translation strategy indicates four main

steps which are

1- Voluntarily asked a researcher colleague who is an Arabic native speaker from Saudi

Arabia and is also a lecturer and researcher in the tourism and hospitality discipline

for assistance. The researcher asked him to translate the survey English version into

an Arabic version and this process took him around five days.

2- At the same time, the researcher also worked on translating the survey into Arabic

since he is a native Arabic speaker and a lecturer in Saudi Arabia in Tourism

Management.

3- Once the Arabic version had been received, the researcher compared both to see any

differences in terms of wording, styles and meaning.

4- The researcher then sent both Arabic and English versions survey to an Arabic

researcher and lecturer who is currently doing her PhD in hospitality at the University

of Surrey, UK. She looked at them both to make sure they all represented the same

meaning. She looked at the wording of each sentence and she came up with good

feedback that was incorporated into the final survey version.

The criteria of choosing the survey translators followed the ITC guidelines for translating and

adapting tests (ITC) (2017), which defines the translator experts as “A person or a team with

sufficient combined knowledge of (1) the languages involved, (2) the cultures, (3) the content

of the test, and (4) general principles of testing, to produce a professional quality

translation/adaptation of a test” (p.12) After this process, the researcher conducted a final

meeting with his PhD supervisors where they discussed the translation process and outcomes.

They agreed upon launching the survey for the pilot test. Please see the final Arabic version

of the Survey in the Appendix F.

113

5.5.2 Pre-testing

Collins, (2003), stressed it is essential that, when designing the survey questions they

“measure the concepts or behaviours we want them to measure, that the data produced

represent ‘true’ values, questions are sensitive enough to measure important real differences

or changes, and that our study covers all the dimensions of the topic under investigation”

(p.229). For these reasons, the researcher conducted a pre-testing for the questionnaires that

involved people with industry background on the subject as well as people with an academic

background as Dillman et al. (2009) also recommended. The researcher had at least eighteen

people from industry familiar with the topic, a minimum of three academic staff minimum

from the school of tourism and hospitality at Surrey University. This stage mainly focuses on

two main validity tests, face and content validity. Face validity concerned with the overall

assessment of the study instrument including clarity and readability where content validity

was concerned with the evaluation of the study survey representations of the subject

including relevance, reliability and depth (Burton et al. 2011).

The researcher successfully managed to have a knowledgeable and experienced group for the

pre-testing procedure. The researcher had a rich and thoughtful conversation with people

from the industry, researcher in Saudi Arabia as well as in the United Kingdom, especially at

the University of Surrey prior to the test launching. The researcher managed to encourage

some hotel owners and managers in Saudi to be part of the process since he believed that

their industry knowledge and experience would add great value and outcome. As well as

academic and researchers from both Saudi and the School of Hospitality and Tourism

Management at the University of Surrey, the researcher sent the survey to 18 participants

with different background, expertise and knowledge. They were asked to give their opinion,

thoughts, suggestions and feedback on the questionnaire presented and to see if it fully and

efficiently represents the topic of the development of customer loyalty in the hotel industry.

114

They were also asked to see the flow of the survey evaluate all presented statements. This

research has exceeded the minimum number of participants stated by Fink (2003) as cited in

Saunders et al.. (2007), which is 10, as eighteen participants were recruited.

The survey was sent mainly via Email, and the survey supports two languages, English and

Arabic and the participants had the choice. The survey used the Qualtrics platforms and it

was sent out on the 12th of November 2018. The researcher gave them a week to respond

before the survey link goes off. Out of the 18 participants, 12 fully completed the survey five

participants provided multi point’s feedback, to which I have added the ones appropriate to

the survey. Additionally, the researcher has specifically asked some participants to help to

identify the timeframe that the survey may take in both languages and the response was

around five minutes and more. The researcher then arranged for an official supervisory

meeting to discuss the process and outcome of the survey pre-testing. The researcher

presented all the feedback received and highlighted all the changes made to the survey. All

the supervisors agreed on all the changes and development made, and agreed that the survey

was ready to be launched to the public. The Final version of the survey is presented in

Appendix G. Table 5.15 summarises the participant comments.

Table 5.29: Feedback

Feedback #

Comments

1  I have been through your questionnaire and to be honest, didn’t answer truly because I haven’t been to Saudi but very few times and cannot remember where I stayed. My answers were somehow submitted and that takes me to one of the issues. Anyway here are my comments. 

1. Well done and I liked the Arabic version, rarely do we get to read Arabic these days 😊

2. The intro needs some revision, especially the sentence of “you cannot withdraw your responses”. After reading it many times and in Arabic also, I managed to get what you were trying to say. I think you should work that sentence out because it's vague and tends to put ones off from consenting to participate.

115

3. Having to fill all the page in one go made me feel overwhelmed and that I wanna leave the survey, so either mention how many questions are they beforehand, or split them into sections in several pages, and most importantly have a percentage completion bar at the bottom so I know that I am nearly done.

4. I observed that all questions are obligatory to answer, fair enough! You wanna minimise missing data, but perhaps an indication of where I have missed might be a good idea. This will help me go straight back to it and fill it instead of having to go through all and get bored and close the questionnaire.

5. Some people rather not say their age, I don’t mind really I am 32, but some people do and having no “I prefer not to say” while making the question mandatory might cost you few respondents, mainly females I suppose.

 That’s all for now. 

2  Your survey is excellent and works well. Couple of suggestions…

1.       Dining alone option – what if a participant has not dined alone. Perhaps change the wording to … if you have or if you needed to dine alone….

2.       The long list of statements is a bit daunting. Perhaps make into 4 not 2 questions OR… add a progress bar so participants can see there are almost there.

3.       Might also be worth telling participants how long the survey will take Hope these help –.

3 1- How is/was your overall experience at your current/last stay?2- My special requirements were understood while staying in this hotel3- This section examines your responses and actions toward your

preferred business4- check grammar5- overall good design, clean and easy to follow6- I like the consistency over the pages too

4 1. English version Took me 6 minutes almost Why there is a one and only full stop after statement # 17? When I go down to read statements I have to scroll up every

now and then to check the 1-7 scale because I keep on forgetting what each number indicates, is there a way to make the scale goes down as we scroll down the questionnaire? Just an idea so please don’t bother if it doesn’t

In the Arabic version, you say in your opening statement that this is about an experience in Saudi but I couldn’t find the same statement in the English version. Check!

2. Arabic version Took me 5 minutes almost

116

Same here, #17 has a full stop In #25 maybe say  وليسدافئ حار وداع

 5 Please indicate the type of hotel?   Please write the hotel name

I thought I had to write both under independent and chain. Write my selected hotels on each. But later found out that it wouldn’t let me click next when I did. I felt that it wasn’t clear that you can only choose either one; independent or chain. Or maybe it was just me lol

How long have you been using it?   I think this could be restructured. Using it sounds more like an object.

“How long have you been your selected hotel’s customer?” maybeHow was your last or current stay overall experience?  

How was your overall experience during your current or last stay at the hotel?

5.5.3 Sampling Procedure

The sampling frame is defined as “lists or procedures intended to identify the elements of the

target population” (Robert et al. 2009, p.70). The study targeted participants in the kingdom

of Saudi Araba who have been in a hotel and have already preferred some hotels. However,

participants were not limited to a specific city in Saudi as the study aimed to attract

participants from across the country. The participants of this research were considered to be

anyone who has a sense of attachment to a specific hotel. The researcher at the beginning of

the survey asked the participant to think of a hotel that they like and would prefer to stay in

Saudi Arabia. Participants were welcomed from different backgrounds, occupation, gender,

and age. The reasons were that it would be interesting to see the attitudes and behaviours of

different groups toward their preferred hotel such as business travellers and luxury travellers,

whether being single or engaged matters as well as the income and age group impacts.

In terms of the sampling technique, there were two main methods, probability or random

sampling and Non-probability sampling. Probability sampling means that every member of

117

the population has an equal opportunity of being involved in a sample whereas non-

probability is a sample of participants or cases that do not need to be representative, or

random, but a strong reason is needed for the inclusion of some cases or individuals rather

than others (Taherdoost, 2016.). Table 5.16 explains the different types of sampling

techniques.

Table 5.30: Sampling Techniques

Sampling TechniquesProbability Sampling Non-probability SamplingSimple random every case of the population

has an equal probability of inclusion in the sample

Quota sampling

is a non-random sampling technique in which participants are chosen on the basis of predetermined characteristics so that the total sample will have the same distribution of characteristics as the wider population

Stratified random where the population is divided into strata (or subgroups) and a random sample is taken from each subgroup

Snowball sampling

a non-random sampling method that uses a few cases to help encourage other cases to take part in the study, thereby increasing sample size

Cluster sampling where the whole population is divided into clusters or groups

Purposive or Judgment sampling

is a strategy in which particular settings persons or events are selected deliberately in order to provide important information that cannot be obtained from other choices

Systematic sampling

where every nth case after a random start is selected

Convenience sampling

Is selecting participants because they are often readily and easily available.

Multi-stage sampling

a process of moving from a broad to a narrow sample, using a step by step process

(Taherdoost, H, 2016.P 21, 22, 23)

This study employed purposive and convenience sampling techniques. These two methods

are considered to be low-cost, less time consuming and convenient (Taherdoost, 2016).This

study targeted hotel customer who can be considered semi-loyal or loyal customers, which

makes the frame of the study unknown. This study targeted people in Saudi, who used hotel

118

in the kingdom and who already have a preferred hotel. These characteristics were explained

in the survey memo and first question. The research was conducted mostly online through

social media, emails and QR code means, which made it easy for the researcher to reach

participants who would be otherwise impossible or difficult and costly.

This study contains a large number of items (64 Statement 29 for the loyalty stages and 35 for

the business input transitions) and therefore it required a large number of participants. As

Hinkin et al. (1997) stated, to generate vigorous outcomes the number of statements or items

should determine the needed sample size. Beavers et al. (2013) highlighted multiple

suggestions in the literature in terms of the appropriate sample size and stated that.

Table 5.31: Sample Size Requirements

Suggested Sample Size Authors

51 more cases than the number of variables (Lawley and Maxwell, 1971).

At least 10 cases for each item, and thesubjects-to-variables [STV] ratio should be no lower than 5

(Bryant and Yarnold, 1995).

At least 100 cases and an STV ratio of no less than 5 (Suhr, 2006).

At least 150 - 300 cases (Hutcheson and Sofroniou,

1999).

At least 200 cases, regardless of STV (Gorsuch, 1983).

At least 300 cases (Norušis, 2005).

(As cited in Beavers et al. 2013, P 2)

Additionally, the study employed regression analysis where the recommended sample size,

according to Tabachnick and Fidell, (2007), N>50+m for simple regressions and for checking

multiple regressions N>104+m where N represents participants and M represents the

independent variable.

5.5.4 Questionnaire Administration

119

This research aimed to explore the development of customer loyalty in the hotel industry. It

aims to identify possible loyalty stages and loyalty transitions where loyalty stages represent

customer’s outcomes of the business inputs in the transitional stages. The research focuses on

two types of hotels, chain, and independent. Chains considered as multi-unit operations run

by well-known brands or companies while independents can be a family-oriented or operated

by a small business. These two types serve the aims since they offered a variety of services

and amenities as well as space for interaction, involvement and engagement with their

customer. This research argues that hotels are the perfect setting for this study for many

reasons including, hotels have different types of services and amenities, hotels can have a

better environment for interaction and engagement and hotels can be best at documenting and

storing customer’s visits and transactions. The quantitative study mainly focused on the hotel

industry in Saudi Arabia.

This study has used three main ways of distributing the research main instrument. The

researcher employed Qualtrics Survey Platform to build and organise the survey. This

platform provided the researcher with two main tools anonymous link and QR Code. These

tools were sent and distributed mainly via social media platforms and Emails. Online surveys

have several advantages and strength and these were the main motives for the researcher to

use this method. Evans and Mathur (2005) discussed some of these, which are flexibility in

terms of distribution methods, speed and time-efficiency, reach, online platforms,

convenience for participants, ease of data entry and analysis, required completion of answers,

questions diversity, low cost, and control of answer order.

The researcher has worked for two months to develop an understanding and positive

relationships with all partners needed in the process of distributing the official survey. The

researcher contacted the Saudi Commission for Tourism and National Heritage and built a

close relationship with Mr Ibrahim Alqurani who was willing to help to distribute the online

120

survey. The researcher also established relationships with hotel owners and general managers

who were happy to promote the survey to their customer using all means such as Survey QR

Code, Social Media. Additionally, there was a great contribution from tourism and holiday

maker’s social media accounts in Saudi Arabia. These accounts have endorsed and promoted

the survey link to hotel users in Saudi Arabia. The survey generated a good response rate

from all types of hotel and areas of Saudi Arabia.

The survey was launched in the middle of November 2018 and was up for one month. The

researcher sent the survey online by Email, all types of social media and QR Code to all

partners. Customers were able to access the survey online through social media, email, or on-

site through the QR Code Methods. Hotels and other distributor partners spread awareness

and encouraged the customer to participate voluntarily. The researcher contacted some hotels

in Jeddah, Dammam and Riyadh who confirmed their interest and willingness to participate.

The participants to the study were customers who expressed their likeness or attachment to a

hotel and this became clear by the survey memo and first statement and questions. The

researcher designed and wrote a short memo with the link that was distributed online, the

message included the following, the research aims and purpose, target participants, researcher

contact details, benefits of the research and gratitude and thanks were given to participants as

well as the privacy matters. The survey was designed to serve the research aims and

objectives stated in the methodology chapter.

The survey has been opened by 782 participants. 504 participants were considered

incomplete and removed from further analysis. As well, 24 participants were eliminated since

they have to consent to move forward with the survey. 254 surveys were completed and 250

were used for the final analysis after eliminating four surveys due to missing values.

121

5.6 Research Ethics and Data Protection

In the process of developing, conducting and collecting qualitative and quantitative data, the

researcher followed the United Kingdom Data Protection Act 1998(DPA) and took into

consideration all ethical research concerns stated by Saunders et al. (2003). The researcher

interview and survey has ensured the voluntary nature of participation and the researcher has

fully explained to participants the purpose of the study, what personal information the

researcher will hold in case of future contact, asked for consent for audio recording when

needed and explained how he will assure privacy and anonymization of personal data. The

data collected will only be used for the purpose of the current research. Not all sensitive

personal data such as a participant’s racial or ethnic origin, political opinions, and sexual life

will be collected without explicit consent. Additionally, the researcher used the University of

Surrey database to secure and store data collected. The researcher organised meetings and

discussions with his research supervisors regarding the security and protection of the

participant’s data. The researcher applied for ethical approval for the quantitative study, from

the ethical committee at the University of Surrey, and he attended the Ethics review process

training on Wednesday 31st October 2018. 

In the preliminary study, the researcher followed these step, voluntary participants,

explanation of the purpose of the study, consent for audio recording, securing personal data,

and saving audio and transcript of files on the University of Surrey database. For the

quantitative study, the researcher followed all the steps required to avoid any ethical issues

and to assure the protection of the data generated. The researcher ensured anonymity,

explained to participants in the survey memo all privacy matters and asked for their consent

before proceeding. He also followed the proper way of receiving and saving the data

received.

122

5.7 Reliability and Validity of Data

To produce valuable, beneficial and trustworthy research outcomes and findings, the

researcher must follow appropriate approaches that assure reliability and validity. The

researcher must pay close attention to their research set of procedures in order for them to

achieve findings with minimum possible errors and to guarantee research rigour (Roberts et

al. 2006). What is the reliability and validity of data in general? Joppe (2000) defines

reliability as:

“The extent to which results are consistent over time and an accurate

representation of the total population under study is referred to as reliability and if

the results of a study can be reproduced under a similar methodology, then the

research instrument is considered to be reliable” (p. 1).

Kirk and Miller (1986) identify three types of reliability referred to in quantitative research,

which relates to:

the degree to which a measurement, stays the same constantly

the steadiness of a measurement over time

the likeness of measurements during a period of time

Joppe (2000) provides the following explanation of what validity is in quantitative research:

“Validity decides whether the research really measures that which it was intended

to measure or how truthful the research results are. In other words, does the

research instrument allow you to hit "the bull’s eye" of your research object?

Researchers generally determine validity by asking a series of questions and will

often look for the answers in the research of others” (p. 1)

What has been done and intended to be done:

Table 5.32: Reliability

123

Qualitative Study Quantitative studyThe researcher has followed these steps:

According to Miles and Huberman (1994), the

validation process of themes must be done in the

early and late phases of the research.

Furthermore, to build reliability and validity to

the process of generating themes, the researcher

should involve an independent reviewer who

will investigate and highlight themes and then

will compare them with what the researcher has.

After that, the researcher should have both

identified themes and expose them to outside

reviewers to have an overall evaluation

The researcher will develop the study scale by

adhering and adapting the scale development

guidelines developed by Churchill (1979) and

Hinkin et al. (1997).

Content Adequacy Assessment via Q Sort

Technique

Reliability and Validity of the Scale will use

factor analysis assumptions and criteria, which

will be explained thoroughly in the analysis of

findings chapter.

5.8 Data Analysis Methods

5.8.1 Sample Characteristic Analysis

At this stage, the researcher analysed the types and characteristics of participants. The

researcher first highlighted the socio-demographic characteristics of the participants, which

included participant’s gender, nationality, marital status, age and the level of education.

Additionally, the researcher examined the participant’s profile by examining the types of

hotel that they prefer, the length of the relationship, and number of visits as well as the main

purpose of travel. Additionally, there is a question regarding their feeling about their current

or last visit to their preferred hotel. All these questions provide interesting stories about the

participant’s state of loyalty as well as providing the opportunity for the researcher to

understand loyalty better by being able to compare between groups and see if these factors or

some of them have an effect on their state of loyalty.

5.8.2 Exploratory Factor Analysis

Factor analysis is a group of approaches used to study how underlying constructs affect the

responses on a number of measured variables. Exploratory Factor Analysis attempts to

124

discover the nature of the constructs influencing a set of responses, highlights items that go

together and assist the researcher in identifying and developing the scales (DeCoster, 1998).

EFA was used in this research to examine the validity of the survey used in this study that

was aimed to examine the conceptual module of this research. The researcher used the

Maximum Likelihood as the extraction method for the factor analysis alongside Promax

rotations. This was used to identify factors and to come up with a group of variables that

stand together. The study performed two factor analyses, one for the loyalty stages with 29

items that represent the four loyalty stages stated in the conceptual model and the other factor

analysis includes 35 items the represents variables for the loyalty transitions or business

inputs. Information regarding methods employed, the sample size required, criteria and

assumptions followed will be explained in detail in the Analysis of Findings chapter.

5.83 Reliability of the Scale

This study employed the following measures in terms of the study constructs reliability and

validity;

Said (2018) highlighted three critical measures regarding the reliability and validity of

constructs. These measures were:

1- Cronbach’s alpha: Measures the degree of internal consistency.

2- Inter-item Correlation: An acceptable value should be > 0.30

3- Item-Total correlation: An acceptable value should be > 0.50

(Said, 2018 .p 34)

5.8.4 Descriptive Analysis

The study constructs were subjected to descriptive analysis using IBM SPSS Statistics 25.

Descriptive analysis provides the researcher insights regarding each construct’s central

tendency (mean), measure of variability (standard deviation) and number of participants and

125

items. This enabled the researcher to analyse the participant’s response to each construct and

compare results. This analysis will be discussed more in the analysis of finding chapter.

5.8.5 Correlation Analysis

Correlation analysis helped the researcher to identify the level and type of relationship that

existed between the study variables. The Pearson correlation coefficient, as Sedgwick (2012)

stated, “Measures the strength of linear association between two variables” (p1). The

researcher followed the following assumption and the coefficient was verified on a scale with

no units and the value range from −1 through 0 to +1. If the correlation coefficient is positive,

then a positive correlation would have existed (Sedgwick, 2012). These relationships will be

explained thoroughly in the Analysis of findings chapter.

5.8.6 T-test ANOVA

T-test and ANOVA performed in this study to compare differences might have occurred

between the study different group, characteristics and profiles. It helped the researchers to

identify differences between groups in terms of mean, standard deviation, F Ratio and

significant level.

5.8.7 Regression Analysis

Regression analysis, as Tabachnick and Fidell (2007) discussed, delivers a value for the

effect of one variable on the value of another, and thus, this study used simple and multiple

regression analysis. The objective of this method was to enable the researcher to predict the

dependent value from the values of the independent variables (Hair et al. 2014). Simple linear

regression is acquired when the predictor variable is a single variable and there is a straight-

line relationship between the dependent and independent variable (Tabachnick and Fidell,

2007), whereas on the other hand in multiple regression the predictor is more than one

variable. This study followed Baron and Kenny’s (1986) recommended steps when

examining the mediation relationship in the multiple regression analysis stage.

126

Information regarding regression assumptions such as the sample size method,

multicollinearity criteria, normality assessment, outlier detection techniques, independence of

residual assumption and others will be explained in greater detail in the Analysis of Findings

chapter.

5.8.8 Cluster Analysis

The main goal of Cluster analysis is “to find an optimal grouping for which the observations

or objects within each cluster are similar, but are dissimilar to the objects in other clusters”

(Babu et al. 2014, p. 424). In this research, the objective of this analysis is to explore a

different group of customers if they existed based on their state and strength of loyalty to

their preferred hotel. The study employed the K-mean cluster method for this process, which

will be explained in much detail in the Analysis of Findings chapter.

127

Chapter 6: Analysis of Findings

6.1 Introduction

This chapter presents the results of the analysis of the data collected using the main study

instrument. At this stage, the researcher had examined all aspects of the participants in terms

of their socio-demographic characteristics - such as gender, age, nationality, marital status

and level of education – and then profiled them in terms of the participants’ preferred hotel

types, length of existing relationship, number of visits, purpose of travel, and their overall

experiences regarding their current/last visit. These data assisted the researcher to have a

better understanding of the study participants. The analysis then moved to the second stage of

the analysis of the scale items using factor analysis. The researcher performed Exploratory

Factor Analysis using SPSS, Maximum Likelihood and Promax rotation for both the loyalty

stages and loyalty transitions. This process gave the researcher four factors for the loyalty

stages and four factors for the loyalty transitions as initially proposed. Then the researcher

took these eight constructs and checked them for scale reliability. Following the scale

reliability test, descriptive and correlation analyses were conducted followed by series of T-

tests and ANOVAs to determine any sample differences. The researcher then used a

regression analysis to test the study’s conceptual model and hypotheses. In addition, the

researcher conducted cluster analysis, and then used one way ANOVA and cross tabulation to

compare the tests and check for any differences between these groups. Table 6.1 presents the

timeline and process for the data analysis,

Table 6.33 Data Analysis Process

128

6.2 Participants’ Characteristics

The main target for this study was to attract people who have a preferred hotel in the

Kingdom of Saudi Arabia to participate in the study’s main instrument. The instrument went

through multiple stages in terms of content validation, purification and modification prior to

its official launch. The final survey supported two languages, Arabic and English and was

targeting at customers who had already visited a specific hotel. The study survey was

launched online and the survey links and QR Code were distributed to the study partners who

agreed to support in distributing the survey. Those partners included tourism and hospitality

social media influencers, hotel owners and managers, and academics from the tourism faculty

in King Abdul-Aziz University, as well as a representative from the Saudi Commission for

Tourism.

129

Data Analysis Process

Stage 1 Participants’ Characteristics Participants’ Profile Socio-demographic

Stage 2 Factor Analysis: Exploratory Factor Analysis

Stage 3 Scale Reliabilities

Stage 4 Descriptive Analysis

Stage 5 Correlation Analysis

Stage 6 T-Test

Stage 7 ANOVA Test

Stage 8 Regression Analysis Hypothesis Testing

Mediation Testing

Stage 9 Cluster Analysis Cluster ANOVA

Crosstabs Analysis

The survey was launched on the 27th of November 2018 and due to the nature of online

surveys, the researcher only accessed information from the people who opened the survey

link but not the total number the survey reached. In total, the survey links were opened by

761 participants. After excluding non-engaged and incomplete questionnaires, the total usable

and completed questionnaires were 250, which accounted for 32.85% of the total participants.

Participants were mainly Saudis with a small percentage of other Arab and non-Arab

participants.

6.2.1 Socio-demographic Characteristics 6.2.2 Gender

Figure 6-4: Participants’ Gender

Gender was studied in terms of its role and impact on customer loyalty in different types of

products and services. For example, a study examining customer loyalty in the retail sector by

Lin (2008) stated that customer loyalty can differ in terms of genders and, in their study, there

were more males than females and the differences were significant. Additionally, a study

done regarding customer loyalty within fine dining, examining the moderating role of gender

has shown that for females, finding satisfaction from their experience plays a greater role in

130

developing loyalty than it does with males, whereas restaurant image was more important for

males in building their loyalty than it was females (Emily et al. (2014).

In this study, 83.2% of the participants were male and 16.8% were female. Male participants

were extremely high and there were 208 participants in total where female only accounted for

only 42 participants. This percentage may be justified by the employment rate in Saudi. As

the Central Department of Statistics and Information (CDSI) (2013) stated, “In 2010, the

Saudi female labour participation rate was just 18 per cent and accounted for only 9.2 per

cent of the total labour force” (cited in Abeer, 2008, p.713).

6.2.3 Marital Status

Figure 6-5: Participants’ Marital Status

The higher share of participants in this study was married and accounted for 74.8% of the

total sample, as indicated in figure 6.2. Single participants accounted for only 24.8% and

131

there was only one that reported as other. In particular, there were 187 participants who are

married, 62 were single and 1 stated as other.

6.2.4 Age

Figure 6-6: Participants’ Age Group

In terms of the participant’s age, this seems to mirror the normal distribution for the Saudi

population. As The CIA World Factbook (2018) stated that 90% of the Saudi population are

between the age of 1 year to 54 years old and 65% of the total population are between the

ages of 15 to 54 years old. In this study, the highest percentage of the participants belongs to

group two, which represent the age between 30 and 39. The lowest percentage was assigned

to group 5, which represent the age between 60 and 80. The majority of the participants fell

into groups 1, 2 and 3, which ranges between 18 to 49.The table 6.2 below presents the age

group, percentage and total participants for each group.

132

Table 6.34: Age Group

Age Group 1 2 3 4 5 NonYears 18-29 30-39 40-49 50-59 60-80 2Percentage 21.6% 45.6% 22% 6.4% 3.65 .8%Participants Number

54 114 55 16 9 2

6.2.5 Level of Education

Figure 6-7: Participants’ Level of Education

94.4% of the study participants are highly educated and ranked their education at the level of

university and postgraduate. In general, only nine participants reported themselves as a high

school graduate, which accounted for 3.6% of the total participants. 133 participants stated

that they are university degree holders, which accounted for 53.2% and 103 reported

themselves as a postgraduate, which represents 41.2% of the total participants and, finally, 5

participants chose to report themselves as others, which accounted for only 2% of the total

participants.

133

6.2.6 Nationality

As this study aimed to attract participants from Saud Arabia, it is not surprising that there

were 219 participants who reported themselves as Saudi Citizens, which accounted for 87.6%

of total participants. 11 participants were from other Arab countries such as Lebanon and

Egypt and this accounted for 4.4%. Additionally, there were 10 participants who reported

themselves as Non-Arab and some were from India and Pakistan, while others accounted for

4% of total participants. Finally, there were 10 participants who did not report where they

were from.

Table 6.35: Participants’ Nationality

Nationality Saudi Arab Non- Arab Not Provided

Numbers 219 11 10 10Percentage 87.6% 4.4% 4% 4%

6.3 Participants’ Profile

6.3.1 Types of Hotel

Figure 6-8: Types of Hotel

134

One of the fascinating facts about the participants of the study was the number of hotels

represented and the regions covered. There were around 50 hotels recorded as the

participants’ preferred hotel from the five main provinces in Saudi Arabia- Riyadh, Mecca,

Jeddah, Madinah and Dammam. There were 156 participants who reported their preferred

hotel as part of a chain, accounting for 62.4% of the total participants. The other 37.6%

described their preferred hotel as an independent and there were 94 participants in this

category.

6.3.2 Length of Relationship

Figure 6-9: Length of Relationships

The length of the relationship was found to be a critical factor in the determination of

customer loyalty as Chung and Li (2012) confirmed in their study. In this study, the

135

researcher asked participants about the length of their relationship with their preferred hotel

and the response frequency was almost equal for all four options. Participants who have a

relationship that was less than a year were 84 participants, which accounted for 33.6% of the

total participants. Participants with a relationship between one year and two years were 52

participants and that accounted for 20.8%. A relationship that was between two years and five

years accounted for 22%, which represents 55 participants and, finally, the longest

relationship that exceeded five years accounted for 23.6% representing 59 participants, as

confirmed in Figure 6.6.

6.3.3 Number of Visits

Figure 6-10: Number of Visits

136

This question aimed to highlight the number of visits that the participants had made to their

preferred hotel. 107 participants who accounted for 42.8% of the total participants stated that

they have visited their chosen hotel at least one to three times. 67 participants who accounted

for 26.8% reported that they have visited their preferred hotel from four to six times. The

third category consisted of 76 participants that accounted for 30.4% who indicated that they

have visited their chosen hotel more than six times, as noted in Figure 6.7.

6.3.4 Experience of Current/Last Stay

Figure 6-11: Participants Experience

The vast majority of the study participants reported their experience at their current or last

visit as a positive one (Figure 6.8). 217 participants reported their last experience as a

137

positive and that accounted for 86.8% of the total participants. 31 participants described their

experience as neutral, which accounted for 12.4% and on the other hand, there were only two

participants who reported their last/current experience as negative.

Given that participants were asked to choose their preferred hotel, it is not surprising that the

response was largely positive but it does highlight that a preferred hotel can support both

neutral and occasional negative experiences

6.3.5 Purpose of Travel

Participants were given the freedom to choose one or more than one reason for their travel

since they may have visited their preferred hotel more than once and, potentially, for a

different purpose. Travel for leisure was chosen by 154 participants and it was the highest

purpose of travel. The second highest purpose was travel for business and 74 participants

indicated that business was their purpose to travel. The third purpose was visiting family and

friends and this option was chosen by 33 participants’ and. Finally, 40 participants chose the

‘Other’ option and stated their purposes as travel for religious and other purposes. Table 6.4

summarises these numbers

Table 6.36: Participants’ Purpose of Travel

Purpose Business Leisure Family y & Friends

Others

Number of Clicks

74 154 33 40

6.4 Factor Analysis: Exploratory Factor Analysis

The main objective of factor analysis was to test and identify the relationships that exist

among multiple numbers of items and, in doing so, to gather the items into meaningful

smaller groups, known as factors. These constructs are comprised of correlated variables and

are typically similar in terms of content or meaning. (Hooper, 2012).There were two main

138

reasons for conducting factor analysis; first to help the researcher extract factors out of the

study data and the second reason was to support the development of factors or dimensions by

assigning a set of items that represents common themes or theory (Hooper, 2012).

In terms of the extraction method, this study employed the Maximum Likelihood method.

The advantages of using this method are as follows, “it allows for the computation of a wide

range of indices of the goodness of fit of the model. Maximum Likelihood also permits

statistical significance testing of factor loadings and correlations among factors” (Fabrigar et

al. 1999, p277). In terms of the rotation method, this study used the oblique rotation method

(Promax). The reason for choosing this method was that, in the social science as Costello et

al. (2005) discussed, behaviours are expected to be highly correlated. Thus, they assume a

good level of correlation exists among factors as a result of the fact that, “oblique rotation

should theoretically render a more accurate, and perhaps more reproducible, solution”

(Costello et al. 2005.p 3).

In terms of sample size, this study used 250 completed and usable surveys, which seems to be

highly acceptable in the literature. Beavers et al. (2013) have provided different views

regarding this matter, and Table 6.5 was created to make it easier to view.

Table 6.37 Sample Size Requirements

Suggested Sample Size Authors

51 more cases than the number of variables (Lawley and Maxwell, 1971).

At least 10 cases for each item, and thesubjects-to-variables [STV] ratio should be no lower than 5

(Bryant and Yarnold, 1995).

At least 100 cases and an STV ratio of no less than 5 (Suhr, 2006).

At least 150 - 300 cases (Hutcheson and Sofroniou,

1999).

At least 200 cases, regardless of STV (Gorsuch, 1983).

At least 300 cases (Norušis, 2005).

(As cited in Beavers et al. 2013, P 2)

139

In terms of selecting the number of factors, this study has used the eigenvalue greater than

one criterion to determine the number of factors to be extracted. As Beavers et al. (2013) state

“eigenvalue represents the maximum variance that a single linear combination (factor or

component) can statistically explain, using the eigenvalues as an indication of value for

retaining the factor is conceptually sound” ( p.8). This study considered factors that have 3

items and more, as well as a correlation between variables having to be 0.30 or greater

(Tabachnick and Fidell, 2007). Tabachnick and Fidell (2001) suggested that 0.32 should be

the minimum loading of an item to a factor, which gave the researcher roughly 10% of

overlapping variance. Additionally, cross-loading was considered when an item loads at 0.32

or more on more than one factor and the decision was up to the researcher as to whether to

accept this item or not.

In terms of testing and evaluating whether a particular dataset was a suitable for factor

analysis, there are two main tests. The first is Bartlett’s Test of Sphericity. When this test is

significant at less than 0.05 “it provides the researcher evidence that the observed correlation

matrix is statistically different from a singular matrix, confirming that linear combinations”

exist (Beavers et al. 2013p.4). The second test is the Kaiser-Meyer-Olkin Test of Sampling

Adequacy. It is a test of the communal variance in the items. Kaiser, Meyer, and Olkin

suggest the following guideline for evaluating the measure,

Table 6.38 Guidelines for the Kaiser-Meyer-Olkin Test

KMO Value Degree of Common Variance0.90 to 1.00 Marvellous0.80 to 0.89 Meritorious0.70 to 0.79 Middling0.60 to 0.69 Mediocre0.50 to 0.59 Miserable

(Beavers et al. 2013.p 4)

140

In this study, the research instrument consisted of two main stages: the first stage aimed to

identify and explore the stages of customer loyalty and the second aimed to highlight and

examine the customer loyalty transitions – the range of practices and inputs provided to the

customer by the service provider. In order to test the validity of the instrument, exploratory

factor analysis (EFA) was performed separately for each of the two phases of the study. The

first phase consisted of 29 items, which represented the customer loyalty stages and the

second phase consisted of 35 items representing business inputs toward their loyal customers.

The researcher ran the analysis using different types of extractions and rotations method. The

researcher decided that the most suitable method of extraction was maximum likelihood and

the rotation was Promax, due to the strong correlation between all variables. The researcher

employed IBM SPSS 25 statistics to perform the factor analysis. This analysis revealed

constructs where sets of items go together as a whole and represent a scale. All items

included in the study went through two main processes, first they were drawn from existing

scales, the literature review and interviews and the second process was to validate them

through the Q sort process and pilot study. Most of the items have been edited and changed to

suit the hotel environment and setting as well as according to the outcome of both the Q sort

and pilot study.

Table 6.39 Factor Analysis Assumption

The correlation matrix 0.30 and above The Bartlett's test of sphericity should be significant

Less than 0.05

The measure of sampling adequacy 0.60 or greaterAbsolute Value Below 0.40 or greater Extracted factors ( Eigenvalue) Greater than one

6.4.2 Loyalty Transitions (EFA):

The analysis of the loyalty transitions followed the same criteria that were employed for the

loyalty stages. All items of customer loyalty transitions (35) were subjected to factor analysis

141

using IBM SPSS Version 25 in order to identify the underlying factors. In this analysis,

maximum likelihood was employed as the main method of extraction along with Promax

rotation. The KMO result was 0.959 and Bartlett’s test of sphericity test is significant

showing that the data were suitable for factor analysis. .The analysis used the eigenvalue

method (greater than 1) for the number of factors to be extracted and the absolute value was

0.40 and above. There were four factors extracted with eigenvalues greater than one and these

factors accounted for 63.87% of the total variance explained. The factor loadings provided\

an acceptable result with at least three items assigned to each factor above the loading cut-off

value for this study of 0.40. These four factors represented the customer loyalty transitions.

There were two items with cross-loading less than .20.The first item was “The hotel staff

treated me with full respect” loaded on factor one with .57 and factor four with .4 loading

values. The second item was “The service provider in charge of my account remembers

birthdays and anniversaries” loaded on factor two with .51 and factor three with .44 loading

values. These two items were not included in the second stage of the analysis, which was the

scale reliability. Dealing with cross-loading items the researcher followed the Costello and

Osborne (2005) recommendations as explained earlier in the loyalty stages.

The first factor extracted had an eigenvalue of 17.16 and explains 49 % of the variance. This

factor consists of nine items which mostly belong to the original attract and acquire

transition. All items in factor one were strongly loaded and ranged between 0.42 and 0.99.

The items included in this scale were adopted from the lodging quality index scale developed

by Getty and Getty (2003) and used by Ladhari, (2009).

The second factor had an eigenvalue of 2.97 and explained 8.49% of the variance. This factor

consisted of eight items and all loaded between 0.48 and 0.70. This factor was labelled as the

customer recognition and appreciation transition of loyalty. Items included in this scale

adopted three items from the Provider Sociality Scale (Chas et al. 2000), two items from

142

Scanlan and McPhail (2000) familiarisation items and one item from King (1995) presented

in Ariffin and Maghzi (2012), one item from the lodging quality index developed by Getty

and Getty (2003) and one item was developed for this study from an understanding of the

interviews and literature. Even though some of these items came from a different initial scale

they have all shown strong scores in term of scale reliability, Cronbach’s alpha, inter-item

correlation, and item-total correlation.

The third factor extracted an eigenvalue of 1.2 and explained 3.45% of the variance. This

factor included eight items and they loaded between 0.42 and 0.85. This factor was labelled

as the customer personalisation and value creation transition of loyalty. Items included in this

scale were adopted from multiple scales and literatures, these scales included personalisation

(Scanlan, and McPhail, 2000), and the Service Provider Sociality Scale Chas et al. (2000),

Ariffin, and Maghzi, (2012) Ahearne and Jones (2007) lodging quality index scale by Getty

and Getty (2003) and items from the literature Oh et al. (2007) and Prahalad and

Ramaswamy, (.2004). Even though these items were from different scales together they have

shown strong scores in term of scale reliability, Cronbach’s alpha, inter-item correlation, and

item-total correlation.

The last factor extracted had an eigenvalue of 1.009 and explained 2.88% of the variance.

This factor consists of three items loaded between 0.47 and 0.69.This factor was named as the

customer engagement transition of loyalty. Two of the items included in this scale came from

the Personal Connection Courteous Expressions items in the service provider sociality scale

presented by Chas et al. (2000) and the other item was originally from Martin(1986)

presented in Ariffin and Maghzi’s (2012) study.

Below table 6.8 presents all the EFA assumptions and analysis:

143

Table 6.40 Pattern Matrix for Loyalty Transitions

Pattern Matrix (Loyalty Transitions)

Maximum Likelihood

(Promax-Rotated

Loading)

Factors

1

(AA)

2

(RA

)

3

(PV)

4

(CE) Communality

The hotel was bright and well lit .998 .738

The hotel provided a safe environment .994 .740

The hotel’s interior and exterior were well

maintained

.914 .692

The hotel atmosphere was inviting .716 .751

The front desk was visually appealing .688 .581

The employees had clean, neat uniforms .669 .643

Employees were willing to answer my

questions

.577 .584

The outdoor surroundings were visually

attractive

.557 .398

Charges on my account were clearly explained .425 .424

Service providers told me something personal

about themselves

.708 .354

Service providers remember my preferences .705 .569

Feelings of affection have built between me

and the receptionist after a few visits

.673

.554

This hotel offers special rewards for loyal

customer

.608 .444

I was presented with an unexpected welcoming

token or gift

.599 .464

Service providers discussed my personal likes .588 .511

144

and dislikes

Service providers teased me in a friendly way .509 .500

Reservationists tried to find out my particular

needs

.487 .511

Service providers make me feel really special .856 .769

The hotel offered me the opportunity to co-

construct my experience

.740 .654

The hotel offers me individually customized

services

.623 .591

The hotel made me feel like an important

person

.589 .703

Service providers showed a genuine concern

for my well being

.570 .749

I was given a warm “goodbye” on checking out .490 .611

I got what I paid for .454 .624

My special requirements were understood

while staying in this hotel

.426 .553

Service providers have been sympathetic to me

concerning any problems with a product or

service

.690 .733

Service providers listened carefully to what I

had to say

.620 .734

The hotel staff knew my name and/or

nationality

.475 .348

Eigenvalue 17.166 2.971 1.21 1.01

Variance Explained 49.05% 8.5% 3.45% 2.88%

Total Variance Explained 63.87%

*Items Loading Less than .40 have not been displayed

*Two cross-loading items were not used in further analysis

145

6.4.1 Loyalty stages constructs (EFA):

All items of the customer loyalty stages (29) were targeted for factor analyse using IBM

SPSS Version 25 in order to identify the emergent constructs. KMO result is .961 and

Bartlett’s test of sphericity test is significant, confirming the data were suitable for factor

analysis. In the analysis, maximum likelihood was employed as the main method of

extraction along with Promax rotation. The analysis used the eigenvalue method (greater than

1) for identifying the number of factors to be extracted and the cut-off for absolute value

was .40 and above. There were four factors extracted with eigenvalues greater than one and

these factors accounted for 67.75% of the total variance explained. The factor loadings

represent a satisfactory result with at least three items assigned to each factor that are above

the loading cut-off value set for this study at 0.40. There were two items with cross-loading.

The first item is “I am proud that I use the services of this hotel” loaded on factor one with

0.57 and factor two with 0.44 loading values. The second item is “The employee(s) in this

hotel make(s) me very happy” loaded on factor one with 0.55 and factor three with 0.54

loading values. These two items were not included in the second stage of the analysis, which

is the scale reliability. The researcher has followed Costello and Osborne’s (2005)

recommendations by not dropping the cross-loading items and rerunning the analysis to avoid

compromising the integrity of the data at this stage, but decided not to use them for further

analysis as Costello, and Osborne (2005) suggested once the researcher has several adequate

loaders on constructs.

The first factor extracted had an eigenvalue of 15.48 and explains 53.4% of the variance. This

factor consists of eight items, which mostly belong to the original description of behavioural

loyalty. All items in factor one were strongly loaded and ranged between 0.65 and 0.94. The

first five items in this scale belong to Zeithaml et al.’s (1996) Behavioural intention battery

146

scale, the seventh item was from the emotional attachment scale presented in Hyun, and Kim,

(2012) study, which was adopted from Cicirelli (1995) and Vlachos et al. (2010), and the

sixth and eighth items were developed for this study from an understanding of the interviews

and literature review. Even though these items were from different scales, they have shown

strong scores in term of scale reliability, Cronbach’s alpha, inter-item correlation, and item-

total correlation.

The second factor achieved an eigenvalue of 2.01 and explained 6.94% of the variance. This

factor consists of six items and all loaded between 0.406 and 0.80. This factor was labelled as

the customer affective commitment stage of loyalty. The scale includes items from the

affective commitment scale developed by Schechter (1985), Harrison-Walker, L. J. (2001)

(two items, third and fifth), Hyun, and Kim, (2012) emotional attachment scale adopted from

Cicirelli (1995) and Vlachos et al. (2010). (Two items, first and fourth), and the last two

(second and sixth items) were developed from definitions by Dwyer et al. (1987) and

Moorman et al. (1992). Similar to the first factor, even though some of these items were

originally from a different stage, they have shown strong scores in term of scale reliability,

Cronbach’s alpha, inter-item correlation, and item-total correlation

The third factor extracted had an eigenvalue of 1.136 and explain 3.91% of the variance. This

factor included five items and they loaded between 0.48 and 0.758. This factor was labelled

as the customer emotional attachment stage of loyalty. This scale includes four items (first,

third, fourth and fifth items) extracted from the emotional attachment scale presented in

Hyun, and Kim, (2012) study, which was adopted from Cicirelli (1995) and Vlachos et al.

(2010) and one item was developed for this study from an understanding of the literature and

interviews.

147

The last factor extracted had an eigenvalue of 1.01 and explained 3.5% of the variance. This

factor consists of three items loading between 0.41 and 0.71. This factor was named as the

customer belonging stage of loyalty. These three items were adopted from the customer

citizenship behaviour scale developed by (Gtoth, 2005; Yi and Gong, 2013) and also

evaluated in Laee et al.’s (2016) study.

Table 6.41 Pattern Matrix for All Loyalty Stages

Pattern Matrix (Loyalty Stages)Maximum Likelihood (Promax-Rotated Loading)Factors1

(BL)

2

(AC

)

3

(EA)

4

(BCCB)

Communality

I would recommend this hotel to someone who seeks

my advice

.943 .817

Doing business with this hotel makes me feel good .920 .862

I consider this hotel my first choice to stay in .906 .712

I say positive things about this hotel to other people .863 .826

I suggest to friends and relatives that they do

business with this hotel

.835 .75

I am happy with the service I received .695 .77

When I receive service from the employee(s) in this

hotel, I feel that I can trust him/her/them completely

.659 .763

I have positive memories associated with this hotel .655 .50

If someone praised the employee(s) in this hotel, I

would feel pleased

.801 .78

I have the desire to maintain my relationship with

this hotel

.761 .687

I care about the success of this hotel .741 .68

I would feel sorry if the employee(s) in this hotel quit .665 .59

148

his/her/ their job(s).

I want to help this hotel achieve its goals .576 .628

I am willing to make a sacrifice to continue this

relationship

.406 .542

When I feel depressed, the employee(s) provide(s)

me with comfort during the process of serving me in

this hotel.

.758 .647

I have developed a positive relationship with this

hotel

.651 .646

I have a passionate interest in the employee(s) in this

hotel

.648 .659

When I place an order in this hotel, I have faith in the

employee’s advice/suggestions.

.491 .52

If I have or need to dine alone, it is not awkward to

eat at this hotel because the employee(s) is/are

friendly and sociable with me

.487 .506

I have assisted other customers when they needed my

help

.712 .654

I have taught other customers to use the service

correctly

.579 .582

I always fill out the customer survey form .417 .533

Eigenvalue 15.482 2.014 1.136 1.018

Variance Explained 53.4% 6.94% 3.91% 3.51%

Total Variance Explained 67.75%

*Items Loading Less than .40 have not been displayed

* Cross loading gap at least .20

*Two cross loading items were not used in further analysis

149

6.5 Scale Reliabilities

Exploratory factor analysis provides the study with four factors representing the stages of

loyalty and another four factors representing the loyalty transitions. Said (2018) has

summarised three critical measures in the process of determining the reliability and validity

of constructs. These measures were as follows,

4- Cronbach’s alpha: Measures the degree of internal consistency.

5- Inter-item Correlation: An acceptable value should be > 0.30

6- Item-Total correlation: An acceptable value should be > 0.50

(Said, 2018 .p 34)

This study has focused on three measures regarding the scale reliability Cronbach’s alpha

coefficient (a), item-to-total correlations and the inter-item correlations. Alpha was

introduced by Lee Cronbach in 1951” to provide a measure of the internal consistency of a

test or scale; it is expressed as a number between 0 and 1. Internal consistency describes the

extent to which all the items in a test measure the same concept or construct” (Mohsen and

Reg, 2011.p 54). In terms of assessing the value of Cronbach’s alpha, George et al. (2015)

has provided a general rule of thumb, which is from 0.6 to 0.7 shows an acceptable level of

reliability, and 0.8 or larger indicates a very good level of reliability. Furthermore, George

and Millery (2003) have provided more in-depth rules of thumb (Table 6.10).

Table 6.42 Reliability Level

Excellent Good Acceptable Questionable Poor Unacceptable

.90 and above .80 and above .70 and above .60 and above .50 and above Less than 50

Table 6.10 Inspired from (George and Millery, 2003. 231)

150

In terms of the accepted value of the item-total correlation and inter-item correlation and the

general rule of thumb, Robinson (1991) suggested that, “if the score of the item-to-total

correlations is more than 0.50 and the inter-item correlations exceeds 0.30, the construct

validity is satisfied”(As cited in Said.H,2018 p.33). These measures were employed in the

assessment of all study constructs, and they are presented in detail in the following sections.

6.5.1 Loyalty Stages Scales:

6.5.1.1 Behavioural Loyalty Scale

Exploratory factor analysis has provided a scale for the customer behavioural loyalty that

consists of eight items. This scale was then tested for reliability using IBM SPSS 25 statistics.

The test indicated that there are strong item-total correlations and the lowest items were

recorded as .689, which still higher than the minimum required value of 0.50, and the highest

score was .895. The inter-item correlations have also exceeded the least required value of.30

(See Correlation Appendix H). In addition, the overall reliability score of the scale was 0.954

(Cronbach’s Alpha), which is much higher than the minimum recommended score of .70.

These results of the level of internal consistency, item-total correlation and the inter-item

correlations, suggested that the scale of customer behavioural loyalty reported from this study

is reliable, even though some items were from different scales in previous studies. Table 6.11

below presents these results in more depth,

Table 6.43 Behavioural Loyalty Scale Reliability

Scale Component

Cronbach’s

Alpha

Item-Total

Correlation

.954

1. I would recommend this hotel to someone who seeks

my advice

.883

2. Doing business with this hotel makes me feel good .895

151

3. I say positive things about this hotel to other people .879

4. I consider this hotel my first choice to stay in .803

5. I suggest to friends and relatives that they do

business with this hotel

.839

6. I am happy with the service I received .803

7. I have positive memories associated with this hotel .689

8. When I receive service from the employee(s) in this

hotel, I feel that I can trust him/her/them completely

.826

6.5.1.2 Emotional Attachment Scale

The second stage of customer loyalty that was explored by the use of Exploratory Factor

Analysis earlier in the research analysis was the customer emotional attachment stage. This

stage scale was represented by five items, and they were subjected to a reliability study using

IBM SPSS 25. All items successfully exceeded the minimum required for item-total

correlation of .50, and the lowest item was .625 and the highest was recorded as .737.

Overall, the item-total correlations are considerably higher than the minimum recommended.

The inter-item correlations have also exceeded the least required value of.30 (See Correlation

Appendix H). The scale has scored a high internal consistency that exceeded the minimum

required of Alpha Coefficient .70 and scored as .866. In general, the scale has shown strong

item-total correlations and strong internal consistency even though the items were from

different scales. This scale from the result illustrated above is considered reliable. Table 6.12

below presents all items and scores.

Table 6.44 Emotional Attachment Scale Reliability

Scale Component

Cronbach’s

Alpha

Item-Total

Correlation

152

.866

1- If I have or need to dine alone, it is not awkward to eat

at this hotel because the employee(s) is/are friendly and

sociable with me

.625

2- When I feel depressed, the employee(s) provide(s) me

with comfort during the process of serving me in this

hotel.

.720

3- I have a passionate interest in the employee(s) in this

hotel

.714

4- I have developed a positive relationship with this hotel .737

5- When I place an order in this hotel, I have faith in the

employee’s advice/suggestions.

.647

6.5.1.3 Affective Commitment Scale

The third loyalty stage that was recognised by the analysis done by exploratory factor

analysis was customer affective commitment. This scale consists of six items and it was

examined for scale reliability using the same tools stated earlier. The scale was tested for the

item-total correlation, inter-item correlations and for internal consistency and the value of

Cronbach’s Alpha. This scale showed high item-total correlation scores, which ranges

between .661 and .808 (see Table 6.13), and which exceeded the minimum required score

of .50. The inter-item correlations have also surpassed the least required value of.30 (See

Correlation Appendix H). Moreover, the reliability scale is .910, which exceeded the

minimum suggested for the internal consistency of .70 Alpha coefficient. These results

confirm that this scale is considered to be reliable.

153

Table 6.45 Affective Commitment Scale Reliability

Scale ComponentsCronbach’s

AlphaItem-Total Correlation

.910

1- I want to help this hotel achieve its goals .758

2- I care about the success of this hotel .777

3- I would feel sorry if the employee(s) in this hotel quit his/her/

their job(s).

.735

4- I have the desire to maintain my relationship with this hotel .784

5- If someone praised the employee(s) in this hotel, I would feel

pleased

.808

6- I am willing to make a sacrifice to continue this relationship .661

6.5.1.4 Belonging CCB Stage Scale

The fourth construct that was explored using the EFA earlier in the analysis is considered to

be the fourth stage of customer loyalty and it has been named as belonging and customer

citizenship behaviour. This construct was tested for scale reliability using the same steps as

applied earlier. Even though the scale only consists of three items, it shows strong reliability

in terms of Cronbach’s alpha, item-total correlation and inter-item correlation scores. The

item-total correlations ranged between .574 and .693, which surpassed the minimum

suggested value of 0.50. The inter-item correlations have also surpassed the minimum

required value of.30 (See Correlation Appendix H). The reliability scores of the scale, which

is represented by Cronbach’s Alpha, is .797 and exceeded the lowest required scored for

internal consistency 0.70. From all the results illustrated above and below in table 6.14, the

scale is considered reliable.

154

Table 6.46 Belonging CCB Scale Reliability

Scale Components

Cronbach’s

Alpha

Item-Total

Correlation

.797

1- I have assisted other customers when they needed my help .659

2- I have taught other customers to use the service correctly .693

3- I always fill out the customer survey form .574

6.1.2 Loyalty Transition Scales

6.5.2.1 Attract and Acquire Scale

The second Exploratory Factor Analysis was performed to examine the loyalty transitions

that represent business inputs into the relationship with their customer. This process has

provided four constructs. The first construct is the Attract and Acquire transition. This

construct was tested for scale reliability using IBM SPSS 25 to assess the internal consistency

of the scale, item-total correlation, inter-item correlation and Cronbach’s alpha. The item-

total correlations were strong and ranged between .563 and .802, which exceeded the lowest

suggested value of 0.5. The inter-item correlations have also exceeded the minimum required

value of.30 (See Correlation Appendix). The Cronbach’s alpha score is .918, which is higher

than the minimum required for internal consistency value of 0.70. These results have shown

that this scale is reliable and can be used for further analysis. Table 6.15 below shows all

scores,

Table 6.47 Attract and Acquire Scale Reliability

Scale Component

Cronbach’s

Alpha

Item-Total

Correlation

155

.918

1- The outdoor surroundings were visually attractive .563

2- Charges on my account were clearly explained .573

3- The hotel was bright and well lit .786

4- The hotel provided a safe environment .785

5- The hotel’s interior and exterior were well maintained .773

6- The hotel atmosphere was inviting .802

7- The front desk was visually appealing .743

8- The employees had clean, neat uniforms .755

9- Employees were willing to answer my questions .728

6.5.2.2 Customer Engagement Scale

The second construct that was confirmed from the EFA process is the second transition of the

customer loyalty model proposed as customer engagement. This construct was examined for

scale reliability and it showed good reliability even though it only consisted of three items.

The scale reliability score has exceeded the suggested lowest score (Alpha coefficient 0.70)

as it scores .772 (Table 6.16). In addition, the correlation coefficient in terms of item-total

correlation is considered high and mostly above the minimum suggested value of .50, even

though one was slightly below this value and scored .494. The inter-item correlations have

also surpassed the least required value of.30 (See Correlation Appendix). From these results

above, this scale is considered reliable for this study and will be used for further analysis.

Table 6.48 Customer Engagement Scale Reliability

Scale ComponentCronbach’s

Alpha

Item-Total

Correlation

156

.772

1- Service providers listened carefully to what I had to say .668

2- Service providers have been sympathetic to me concerning any

problems with a product or service

.699

3- The hotel staff knew my name and/or nationality .4 94

6.5.2.3 Personalisation and Value Creation Scale

The third construct of the loyalty transitions is the personalisation and value creation scale.

This scale consists of 8 items. This construct was examined for scale reliability using the

same steps as stated above. This scale has shown high reliability and strong correlation. The

scale internal consistency was first assessed by looking for the item-total correlation, inter-

item correlation and then the Cronbach Alpha coefficient. The item-total correlation for this

scale was strong and ranged between .702 and .823 (Table 6.17). The inter-item correlations

have also exceeded the minimum required value of.30 (See Correlation Appendix H). The

reliability score for this scale exceeded the lowest score suggested .70 and it scores .933,

which is considered high. From these results, this scale with confidence is considered reliable

even though the items were drawn from different original scales.

Table 6.49 Personalization and Value Creation Scale Reliability

Scale Components Cronbach’s

Alpha

Item-Total

Correlation

.933

1- The hotel offered me the opportunity to co-construct my

experience

.770

157

2- Service providers make me feel really special .823

3- The hotel offers me individually customized services .749

4- The hotel made me feel like an important person .777

5- Service providers showed a genuine concern for my well being .819

6- I was given a warm “goodbye” on checking out .754

7- I got what I paid for .744

8- My special requirements were understood while staying in this

hotel

.702

6.5.2.4 Recognition and Appreciation Scale

The fourth construct of the loyalty transitions is the recognition and appreciation scale. This

scale consists of 8 items. This construct was subject to scale reliability test using the same

steps as stated earlier. This scale has shown high reliability and strong correlation even

though it includes items from a number of different scales. The scale internal consistency was

first assessed by examining the item-total correlation, inter-item correlation and then the

Cronbach’s alpha coefficient. The item-total correlation for this scale was good and ranged

between .500 and .688, which surpassed the lowest recommended value of .50. The inter-item

correlations have also surpassed the minimum required value of .30 (See Correlation

Appendix). The reliability score in terms of Cronbach’s Alpha for this scale also exceeded

the minimum score suggested .70 as it scores .867, which is considered high. From these

results, this scale is considered reliable and will be used for further analysis. Table 6.18

below provides the Scale item-total correlations and Cronbach’s Alpha scores.

158

Table 6.50 Recognition and Appreciation Scale Reliability

Scale Components

Cronbach

’s

Alpha

Item-Total

Correlation

.867

1- Service providers told me something personal about themselves .500

2- Service providers remember my preferences .672

3- This hotel offers special rewards for loyal customer .609

4- Feelings of affection have built between me and the receptionist

after a few visits

.669

5- I was presented with an unexpected welcoming token or gift .563

6- Service providers discussed my personal likes and dislikes .688

7- Service providers teased me in a friendly way .618

8- Reservationists tried to find out my particular needs .649

6.6 Descriptive Analysis

All constructs extracted from the exploratory factor analysis were tested for scale reliability

by examining the internal consistency and correlations among items. After confirming the

scale reliability for all constructs, items in each construct were subjected to a process called

compute variable via SPSS to add them into one variable for further analysis. By doing so,

eight variables were organised and prepared for descriptive statistics. Descriptive analysis

aims to provide information about each variable including central tendency (mean), a

159

measure of variability (standard deviation) and number of participants included. All scales

used in this study were measured on a 7-point scale where 1= strongly disagree and 7=

strongly agree. Table 6.19 below shows the descriptive statistics of the study variables.

Table 6.51 Descriptive Analysis

Scale Mean Std. Deviation Number of Items Participants

Behavioural Loyalty 5.27 1.37 8 250

Emotional Attachment 4.18 1.50 5 250

Affective Commitment 4.63 1.51 6 250

Belonging CCB 4.09 1.66 3 250

Attract Acquire 5.43 1.24 9 250

Customer Engagement 5.06 1.39 3 250

Personalization Value C 4.79 1.43 8 250

Recognition and Appreciation 3.71 1.38 8 250

From Table 6.19, it shows the mean score for the first scale of the first stage of customer

loyalty, which is behavioural loyalty, is 5.27and the standard deviation is 1.38. This indicates

that participants of the study have a strong level of behavioural loyalty toward their preferred

hotel and this fact was expected since the study targeted people who already have a preferred

hotel in mind. The second scale, which represents the second stage of customer loyalty, was

labelled as the emotional attachment stage. This scale’s overall mean is 4.19 and the standard

deviation is 1.5. These measures were expected to be lower than the first stage of loyalty as it

requires more input from the business side. Participants have shown a positive response to

this stage of loyalty, which was encouraged by their positive response to the business input

which will be explained later.

The third scale, which represents the third stage of customer loyalty, is the customer affective

commitment stage. Participants responded positively to this stage, and the mean score is 4.63

160

and the standard deviation is 1.51. Their response to this stage is less than the behavioural

loyalty stage and slightly more than the emotional attachment stage, which should be

explained by their response to the business input. The last scale of the customer loyalty stages

is called belonging and customer citizenship behaviour and this is assumed to be the ultimate

stage of customer loyalty. This scale’s mean score is 4.09 and standard deviation is 1.66.

Unsurprisingly, this scale was the least of all scale belonging to the loyalty stages even

though it is still positive. These are the four stages of customer loyalty and all of them were

considered high in terms of mean score and standard deviation.

Additionally, Table 6.19 illustrates the mean score and standard deviation of the four scales

of customer loyalty transitions, which represent the business inputs and efforts in developing

their customer loyalty. The first scale represents the first state of customer loyalty transitions

labelled as attract and acquire. The mean score for this scale is 5.43 and the standard

deviation is 1.24, and these represent a high positive response to this state, which has also

positively impacted the first stage of loyalty as explained earlier. The second scale of the

customer loyalty transitions is named as customer engagement. This scale mean is 5.06 and

the standard deviation is 1.39. This scale was slightly lower than the first transition but still

highly positive. The third scale represents the third transition of the customer loyalty, which

is labelled as personalization and value creation. This scale’s mean score is 4.79 and the

standard deviation is 1.43. This score is lower than the first two transitions, which is expected

in this study. The overall score for this transition is still considered to be positive. The final

scale of the customer loyalty transitions is named as recognition and appreciation state, which

is considered to be the highest state and input that businesses can offer their loyal customer.

This scale’s mean score is 3.71 and the standard deviation is 1.38. Unsurprisingly, this state

show medium response from the participants and it was not as high as the other transitions.

161

This scale was below the mid-point, which represent that not many of them were provided

with the services in this scale.

6.7 Correlation Analysis

This stage of the data analysis will basically look into the correlation and relationships

between all the variables in the study before going into a more detailed analysis. Table 6.20

below presents the correlation matrix for all variables.

Table 6.52 Correlation Analysis

Correlations Matrix

B L E A A CB

CCB A A C E P V R A

162

Behavioural Loyalty Pearson Correlation

1 .699**

.711**

.565** .770**

.633** .784**

.566**

Sig. (2-tailed)

.000 .000 .000 .000 .000 .000 .000

N 250 250 250 250 250 250 250 250Emotional Attachment

Pearson Correlation

.699**

1 .768**

.706** .578**

.521** .769**

.731**

Sig. (2-tailed)

.000 .000 .000 .000 .000 .000 .000

N 250 250 250 250 250 250 250 250Affective Commitment

Pearson Correlation

.711**

.768**

1 .676** .552**

.469** .638**

.575**

Sig. (2-tailed)

.000 .000 .000 .000 .000 .000 .000

N 250 250 250 250 250 250 250 250Belonging CCB Pearson

Correlation.565**

.706**

.676**

1 .432**

.392** .607**

.585**

Sig. (2-tailed)

.000 .000 .000 .000 .000 .000 .000

N 250 250 250 250 250 250 250 250Attract Acquire Pearson

Correlation.770**

.578**

.552**

.432** 1 .700** .750**

.580**

Sig. (2-tailed)

.000 .000 .000 .000 .000 .000 .000

N 250 250 250 250 250 250 250 250Customer Engagement

Pearson Correlation

.633**

.521**

.469**

.392** .700**

1 .679**

.602**

Sig. (2-tailed)

.000 .000 .000 .000 .000 .000 .000

N 250 250 250 250 250 250 250 250Personalization Value C

Pearson Correlation

.784**

.769**

.638**

.607** .750**

.679** 1 .755**

Sig. (2-tailed)

.000 .000 .000 .000 .000 .000 .000

N 250 250 250 250 250 250 250 250Recognition and Appreciation

Pearson Correlation

.566**

.731**

.575**

.585** .580**

.602** .755**

1

Sig. (2-tailed)

.000 .000 .000 .000 .000 .000 .000

N 250 250 250 250 250 250 250 250**. Correlation is significant at the 0.01 level (2-tailed).

The Pearson correlation coefficient, as Sedgwick (2012) stated, “Measures the strength of

linear association between two variables” (p1). The coefficient is tested on a scale with no

units and the value range from −1 through 0 to +1. If the correlation coefficient were positive,

then a positive correlation would have occurred (Sedgwick, 2012). Cohen (1998) has

163

suggested a rule of thumb for measuring the correlation coefficient. Correlation coefficients

according to Cohen are considered small at .10, medium at .30 and large at .50, regarding its

effect. In this study, the result of the correlation matrix is significant and confirms a

considerably high positive relationship among all variables. The vast majority of variables

were highly correlated with one another except some, which were considered to be a medium

correlated. The highest correlation score in this study was between the behavioural loyalty

stage and the personalization and value creation transition (.784), and the lowest correlation

is recorded between customer engagement transition and the belonging stage (.392).Overall,

the correlation between all variables is considered to be medium to high.

This study discussed that there are direct positive relationships between transitions and stages

as well as a development in loyalty between the loyalty stages, supported by the transitions.

This test provides that there are significant relationships between all the study variables and

all relationship were positively associated. The behavioural loyalty stage has a significant

relationship and is positively correlated with all variable ranged between .56 and .78.

Emotional attachment also has a significant relationship and positive correlation with all

variable ranged from .52 to .76. The affective commitment and belonging stages also have

significant relationships and positive correlations with all variable ranged between medium to

large.

The study looks at the first transition named as attract and acquire and its relationship with

the first loyalty stage named behavioural loyalty. The correlation is considerably high and

scored .77. The second checked the correlation between the second transition, named

customer engagement and second stage named emotional attachment. The correlation

between the two is also high and scores .52. The third assumption is the relationship between

the third transition named personalization and the third stage called affective commitment.

The correlation is positively high and scores .638. The last assumption was to highlight the

164

relationship between the fourth transition named recognition and appreciation and the fourth

stage named belonging. Their correlation is also positively high and scores.585.

6.8 T-test Results

T-test performed in this study to compare two independent variable especially gender, types

of hotel and marital status to the study eight main variable. This test allowed the researchers

to identify differences between groups in terms of mean, standard deviation, F Ratio and

significant level.

6.8.1 Gender:

Male and female have no significant differences in terms of their level of loyalty nor their

responses to the business inputs as shown by the P values presented in Table 6.21. However,

looking at the mean scores it suggests there are some differences in terms of how male and

female rated their state of loyalty and their response to their preferred business inputs. For

example, the belonging stages has been rated as M= 4.38 by the female participants and M=

4.03 by the male participants which indicated that the female has a greater level of belonging

to their preferred businesses. In all the other three loyalty stages women scored higher than

men in terms of the mean scores as presented in table 6.21. On the other hand, the loyalty

transitions have not shown much difference between the two groups.

Table 6.53 Gender T-test

Dependent

Variable

Independent

Variable

N* Mean Std.

Deviation

F-

Ratio

Sig.P

Behavioural Loyalty Male 208 5.19 1.39 .893 .346

Female 42 5.61 1.26

Emotional

Attachment

Male 208 4.15 1.50 .192 .662

Female 42 4.37 1.52

165

Affective

Commitment

Male 208 4.56 1.53 .217 .642

Female 42 4.97 1.42

Belonging

CCB

Male 208 4.03 1.67 .973 .325

Female 42 4.38 1.56

Attract Acquire Male 208 5.41 1.24 .012 .914

Female 42 5.53 1.26

Customer

Engagement

Male 208 5.08 1.36 .483 .488

Female 42 4.99 1.55

Personalization

&V.C

Male 208 4.73 1.42 .174 .677

Female 42 5.08 1.46

Recognition and

Appreciation

Male 208 3.73 1.40 .907 .342

Female 42 3.64 1.32

6.8.2 Marital Status:

It is interesting to see how married and singles responded and rated their state of loyalty. T-

tests have shown a significant difference in terms of their response towards the

personalization and value creation transition at a P value of .008. In addition, the behavioural

loyalty stage was almost significant at P value of .067. In terms of the mean scores, married

participants have rated their belonging at M= 4.18 which is higher than singles (M=3.76),

which indicates the married participants feel they belong more to their preferred hotels than

singles. All other variables show comparable scores in terms of their means (Table 6.22).

Table 6.54 Marital Status T-test

Dependent

Variable

Independent

Variable

N* Mean Std.

Deviation

F-

Ratio

Sig.

Behavioural Loyalty Married 187 5.28 1.43 3.393 .067

Single 62 5.20 1.22

Emotional

Attachment

Married 187 4.19 1.52 .507 .477

Single 62 4.13 1.45

166

Affective

Commitment

Married 187 4.60 1.54 .621 .431

Single 62 4.69 1.46

Belonging

CCB

Married 187 4.18 1.69 2.823 .094

Single 62 3.76 1.51

Attract Acquire Married 187 5.40 1.30 2.818 .094

Single 62 5.48 1.04

Customer

Engagement

Married 187 5.05 1.42 .554 .457

Single 62 5.08 1.34

Personalization

&V.C

Married 187 4.80 1.49 7.245 .008

Single 62 4.71 1.20

Recognition and

Appreciation

Married 187 3.74 1.42 1.956 .163

Single 62 3.60 1.25

6.8.3 Types of Hotel:

A T-test was used to highlight any differences in the study variables in terms of the types of

hotel. This study revealed only one variable that is significantly different and this is the

attract and acquire transition of loyalty. This means participants have identified a significant

difference between the ways independent and chain hotels attempt to attract customers and

acquire their initial loyalty. In terms of the mean scores, they have a higher rating for the

chain hotel at M= 5.55. All other variables have shown similar mean scores, which indicate

that participants have not experienced much of a difference between independent and chain

hotels. However, these statistics indicate that chain hotels put more effort into each of the

transitions but this does not result in higher loyalty except at the behavioural stage.

Table 6.55 Types of Hotel T-test

Dependent

Variable

Independent

Variable

N* Mean Std.

Deviation

F-

Ratio

Sig.

Behavioural Loyalty Independent 94 5.22 1.47 1.906 .169

Chain 156 5.29 1.32

167

Emotional

Attachment

Independent 94 4.26 1.43 .571 .450

Chain 156 4.13 1.55

Affective

Commitment

Independent 94 4.66 1.61 .866 .353

Chain 156 4.62 1.46

Belonging

CCB

Independent 94 4.09 1.55 2.661 .104

Chain 156 4.08 1.72

Attract Acquire Independent 94 5.23 1.38 5.180 .024

Chain 156 5.55 1.14

Customer

Engagement

Independent 94 4.91 1.45 .464 .496

Chain 156 5.16 1.35

Personalization

&V.C

Independent 94 4.78 1.46 .462 .497

Chain 156 4.79 1.41

Recognition and

Appreciation

Independent 94 3.61 1.36 .000 .990

Chain 156 3.77 1.39

6.9 ANOVA Results

The ANOVA test has provided the researcher with the ability to compare the scores of more

than two groups of the study variables. It provides information regarding their mean scores,

standard deviation, F-Ratio and the P values. This test is performed to examine the

differences in participant’s level of education, length of relationship with their hotel and their

number of visits as their responses and rating of their state of loyalty.

6.9.1 Education Level:

Examining the impact of participant’s education level on their evaluation and relationships

with their hotel revealed no significant results in terms of the pValue. However, it is

fascinating to see that university and postgraduate participants have constantly scored higher

in evaluating their loyalty stage and transitions in terms of the mean scores in comparison

with participants holding high school certificate as shown in table 6.24.

168

Table 6.56 Education Level ANOVA Test

Variable Edu Level N* Mean Std.

Deviation

F-

Ratio

Sig.

Behavioural Loyalty High school 9 4.61 1.67 1.02 .384

University/College 133 5.31 1.35

Postgraduate 103 5.24 1.36

Others 5 5.82 1.77

Emotional

Attachment

High school 9 3.86 1.61 .722 .540

University/College 133 4.28 1.58

Postgraduate 103 4.06 1.38

Others 5 4.68 1.84

Affective

Commitment

High school 9 4.22 1.54 .896 .444

University/College 133 4.71 1.60

Postgraduate 103 4.53 1.39

Others 5 5.40 1.63

Belonging

CCB

High school 9 3.70 1.96 .327 .806

University/College 133 4.17 1.72

Postgraduate 103 4.01 1.52

Others 5 4.13 2.53

Attract Acquire High school 9 4.77 1.63 .994 .396

University/College 133 5.43 1.30

Postgraduate 103 5.49 1.09

Others 5 5.15 1.89

Customer

Engagement

High school 9 4.51 1.66 1.12 .338

University/College 133 5.07 1.49

Postgraduate 103 5.14 1.21

Others 5 4.26 1.84

Personalization

&V.C

High school 9 4.27 1.79 .635 .593

University/College 133 4.86 1.44

Postgraduate 103 4.75 1.38

Others 5 4.40 1.53

Recognition and

Appreciation

High school 9 3.15 .905 .801 .494

University/College 133 3.78 1.46

Postgraduate 103 3.70 1.28

169

Others 5 3.22 1.89

6.9.2 Length of Relationship:

Unsurprisingly the length of the relationship between customers and their preferred hotels has

shown a significant difference in terms of the P.values. This test revealed three variables -

two loyalty stages and one loyalty transition - showing significant differences. These are

emotional attachment at a p-value of .016, belonging at p-value of .010 and recognition and

appreciation suppressed slightly the cut off value of the p-value of 0.05 and scores 0.057.

With emotional attachment in terms of the mean scores, the highest score was for the options

that said more than five years (M=4.63) and the smallest score was for the option one to two

years (M=3.82). The Belonging stage has also recorded the highest scores in terms of mean

for the more than five years option (M=4.60) and the lowest for the less than a year option

(M=3.7). The recognition and appreciation transition scores the highest in terms of the mean

for the more than five years option (M=4.03). Moreover, looking at the other variable in

terms of the mean scores it seems obvious that the last option (more than five years) has

constantly scored the highest, which indicates the importance of the length of the relationship

in developing customer loyalty. Table 6.25 presents, in detail, all the information regarding

this variable.

Table 6.57 Length of Relationship ANOVA Test

Variable Length N* Mean Std. D F-Ratio

Sig.

Behavioural Loyalty Less than a year 84 5.04 1.53 1.66 .174One to Two years 52 5.21 1.28Three to Five years 55 5.37 1.31More than Five Years 59 5.54 1.24

Emotional Attachment

Less than a year 84 4.26 1.57 3.48 .016One to Two years 52 3.82 1.48

170

Three to Five years 55 3.92 1.25More than Five Years 59 4.63 1.55

Affective Commitment

Less than a year 84 4.59 1.69 1.36 .253One to Two years 52 4.54 1.55Three to Five years 55 4.43 1.27More than Five Years 59 4.96 1.41

Belonging CCB

Less than a year 84 3.71 1.63 3.83 .010One to Two years 52 3.93 1.56Three to Five year 55 4.26 1.59More than Five Years 59 4.60 1.73

Attract Acquire Less than a year 84 5.32 1.33 .817 .486One to Two years 52 5.32 1.36Three to Five years 55 5.49 1.15More than Five Years 59 5.61 1.08

Customer Engagement

Less than a year 84 5.09 1.51 2.02 .111One to Two years 52 4.89 1.53Three to Five years 55 4.82 1.28More than Five Years 59 5.40 1.13

Personalization &V.C

Less than a year 84 4.77 1.53 1.41 .240One to Two years 52 4.57 1.40Three to Five years 55 4.68 1.43More than Five Years 59 5.09 1.27

Recognition and Appreciation

Less than a year 84 3.82 1.36 2.57 .057One to Two years 52 3.48 1.25Three to Five years 55 3.42 1.24More than Five Years 59 4.03 1.57

6.9.3 Number of Visits:

Expectedly, the number of visits has an impact on the customer state of loyalty. ANOVA

tests have revealed some significant differences in terms of the number of visits and

participants state of loyalty. Three variables have shown significant differences in term of the

pp-value and these are the belonging stage pp-value of .026, the recognition and appreciation

transitions pp-value of .020 and emotional attachment pp-value of .057. Looking at the mean

scores for these three variables, it shows that the third option - more than six visits – was the

171

highest in all three variables. Moreover, the highest scores in terms of the mean for all the

study variables was constantly the third option. Table 6.26 presents more details.

Table 6.58 Number of Visit ANOVA Test

Variable N of visits N* Mean Std.

Deviation

F-

Ratio

Sig.

Behavioural Loyalty One to Three times 107 5.2033 1.38765 .858 .425

Four to six times 67 5.1810 1.42626

More than six times 76 5.4424 1.32750

Emotional

Attachment

One to Three times 107 4.0916 1.58323 2.901 .057

Four to six times 67 3.9612 1.36725

More than six times 76 4.5237 1.48089

Affective

Commitment

One to Three times 107 4.6106 1.65577 .814 .444

Four to six times 67 4.4876 1.37446

More than six times 76 4.8070 1.44326

Belonging

CCB

One to Three times 107 3.8224 1.62160 3.691 .026

Four to six times 67 4.0647 1.59991

More than six times 76 4.4912 1.71051

Attract Acquire One to Three times 107 5.4309 1.27426 .864 .423

Four to six times 67 5.2869 1.26836

More than six times 76 5.5614 1.18397

Customer

Engagement

One to Three times 107 5.0530 1.47029 1.979 .140

Four to six times 67 4.8308 1.35757

More than six times 76 5.2939 1.30522

Personalization

&V.C

One to Three times 107 4.7722 1.39097 2.438 .089

Four to six times 67 4.5243 1.54743

More than six times 76 5.0493 1.35294

Recognition and

Appreciation

One to Three times 107 3.6192 1.37085 3.958 .020

Four to six times 67 3.4683 1.20001

More than six times 76 4.0740 1.50238

172

6.10 Regression Analysis

6.10.1 Introduction:

Regression analysis as Tabachnick and Fidell (2007) suggested, provides a value for the

effect of one variable on the score of another. Multiple regression analysis is a statistical

method that can support researchers to identify and investigate the relationships that exist

between one dependent variable and more than one independent variable. The aim of this

technique is to enable the researcher to predict the dependent value from the values of the

independent variables (Hair et al. 2014). There are two types of regression used in this study,

simple and multiple regression. Simple linear regression is used when the predictor is a single

variable and there is a straight-line relationship between the dependent and independent

variable (Tabachnick and Fidell, 2007). The second type is multiple regression, which helps

the researcher to highlight the significance of the independent variables, the types of

relationships that exist and the interrelationships between the independent variables and their

effects on the dependent variable (Hair et al. 2014).

In order to be able to perform multiple regression, the data are required to be metric (Hair et

al. 2014), which is the case in this study. To assess the prediction accuracy for the regression

model and to examine the effect that the independent variables have on the dependent

variable, the most universally used test is to check the coefficient of determination (R2) and

this measure ranges from 1 to 0 where 0 means the dependent variable cannot be predicted

from the independent variable and 1 represents the opposite (Hair et al. 2014).

6.11 Assumptions

6.11.1 Sample Size

Hair et al. (2014) discussed that the sample size required in multiple regression is considered

the most influential part of conducting the analysis. It has a direct effect “in the statistical

173

power of the significance testing and the generalizability of the result” (p. 170). Tabachnick

and Fidell, (2007) have discussed that a decision on the needed sample size depends on many

considerations such as the alpha level, the number of predictors and the desired power. Hair

et al. (2014) have suggested that the minimum sample needed for multiple regression is 50,

and they recommended 100 cases, but to have a representative sample and a generalizable

result, they suggest the researcher should obtain a ratio of 5:1 meaning that they have to have

at least five cases for each independent variable. This study has followed the sampling rules

suggested by Tabachnick and Fidell, (2007), who also considered the ratio of cases to

independent variables. According to them, the rules of thumb are, N>50+8m for simple

regressions and for checking multiple regressions N>104+8m where m represents the number

of independent variables.

6.11.2 Multicollinearity

Multicollinearity exists when there is a strong correlation between two or more of the

independent variables included in the regression (Field, 2013). Hair et al. (2014) have stated

the main issue that multicollinearity can have on the data analysis is “it creates ‘shared’

variance between variables, thus decreasing the ability to predict the dependent measure as

well as ascertain the relative roles of each independent variable” (p197). There are different

ways to identify multicollinearity such as examining the correlation matrix for independent

variables, but this study has adopted the main and most commonly used measures of

multicollinearity and these are the Tolerance and Variance Inflation Factor measures.

Tolerance can be explained as the volume of variability of the designated independent

variable not explained by the other independent variables, while the Variance Inflation Factor

(VIF) is basically calculated as the inverse of the tolerance value (Hair et al. 2014). In terms

of the accepted levels of multicollinearity, a VIF of up to 10 and tolerance equal to or less

than the value of .10 are suggested (Hair et al. 2014).

174

6.11.3 Normality

This study has employed two measures of normality - graphical analyses of normality and

statistical tests of normality as Tabachnick and Fidell (2007) suggested. Graphical analysis

can be assessed visually by looking at the histogram and normal probability plot. The

histogram “compares the observed data values with a distribution approximating the normal

distribution where the probability plot compares the cumulative distribution of actual data

values with the cumulative distribution of a normal distribution” (Hair et al. 2014 p70). The

normal probability plot is considered more reliable and it is seen as normal when the plotted

data values are aligned with a straight diagonal line. The statistical test of normality can be

examined by checking kurtosis and skewness. According to Tabachnick and Fidell (2007)

“Kurtosis has to do with the peakedness of a distribution where skewness has to do with the

symmetry of the distribution and the skewed variable is a variable whose mean is not in the

centre” (p 79). Regarding these two measures, Skewness and Kurtosis, this study followed

the suggested accepted value of normal distribution presented by Hair et al. (2014), “the most

commonly used critical values are ±2.58 (.01 significance level) and ±1.96, which

corresponds to a .05 error level”.

6.11.4 Outliers

Tabachnick and Fidell (2007) have defined the outlier as “a case with such an extreme value

on one variable or such a strange combination of scores on two or more variables” (p 72).

This study has used two measures in identifying and detecting outlier cases, Mahalanobis and

Cook's distance. The Mahalanobis distance is “the distance of a case from the centroid of the

remaining cases where the centroid is the point created at the intersection of the means of all

the variables” (Tabachnick and Fidell, 2007 p74).This study has used the following rules for

measuring the accepted level of the Mahalanobis distance, for a single independent variable,

the accepted value for chi-square is up to 10.82, for two independent variables 13.81 and for

175

three independent variables 16.26 (Tabachnick and Fidell, 2007). On the other hand, the

Cook’s distance is a test of the whole influence of a case on the model and Cook and

Weisberg (1982) have recommended that values larger than 1 may be a reason for concern

(Andy, 2013).

6.11.5 Independence of Residual

This study has used the Durbin and Watson statistical test as the main measure. This test, as

Field (2009) stated, examines the existing correlation between errors and on this test values

range from 0 to 4. Field (2009) recommends that any value smaller than one or bigger than

three is considered an issue.

6.12 Hypothesis testing:

6.12.1 Hypothesis 1

A hotel’s efforts in the attracting and acquiring transition have a positive effect on customer

behavioural loyalty.

This study suggested that a hotel’s input in the attraction and acquiring transition will have a

positive influence on the customers’ behavioural loyalty. Before performing the regression

test for this hypothesis, the simple regression assumptions were checked for the dependent

176

variable, which is the customer behavioural loyalty. Table 6.27 and Figure 6.9 present

regression analysis assumptions examined for the dependent variable. Table 6.27 shows there

are no issues regarding the regression assumptions and all the assumptions were met to the

standards stated in the regression assumption section above.

Figure 6-12 P-P Plot and Histogram H- 1

Table 6.59 Regression Assumptions Checked:

Assumption Dependent Variable:Behavioural Loyalty

Test Criteria Current Study

Sample Size N> 104 + M*(#Ind Var)

112 250

Normality Skewness and Kurtosis

±1.96 Normal

Normal P-P plots and Histogram

Visually assessed

Accepted

Multicollinearity (A A)* VIF VIF < 10 1Tolerance Tolerance >0.10 1

Outliers MahalanobisDistance

Mahal. < 10.83 Max 10.25

177

Cook'sDistance

Cook <_ 1 Max .465

Independence of Residual Durbin-Waston 1-3 2.17

Table 6.27, provides the result from the regression analysis and it indicates that the Attract

and acquire transition is a significant predictor of the customer behavioural loyalty stage.

Result are as shown in Table 6.28 (B = 0.77, R2 =.59, p = 0.000). P values less than .05 are

considered significant in this study, and beta coefficients explain the strength of influence

that the independent variable has on the dependent variable and the R2 ranges between 0 and

1, and explains the relationship strength. (Hair et al. 2012).These results confirmed that the

attract and acquire transition has a strong, positive impact on customer behavioural loyalty,

and have led to the acceptance of the study’s first hypothesis.

Table 6.60 Regression Model Statistics: Dependent Variable Behavioural Loyalty

Independent DependentBehavioural Loyalty

Attract and Acquire

B T P value R2 F ratio.770 18.97 .000 .592 360.20

6.12.2 Hypothesis 2

A hotel’s efforts in the customer engagement transition have a positive effect on customer

emotional attachment. The second hypothesis proposed that a hotel’s efforts in the customer

engagement transition will have a positive effect on the customers’ emotional loyalty stage.

The dependent variable has met all the criteria for the regression assumptions stated in Table

6.29. The result of these regression assumptions can be checked in Figure 6.10 and Table

6.29.

178

Figure 6-13 P-P Plot and Histogram H- 2

Table 6.61 Regression Assumptions Checked:

Assumption Dependent Variable:Emotional Attachment

Test Criteria Current Study

Sample Size N> 104 + M 112 250Normality Skewness and

Kurtosis±1.96 Normal

Normal P-P plots and Histogram

visually assessed

Accepted

Multicollinearity (C E)* VIF VIF < 10 1Tolerance Tolerance >0.10 1

Outliers MahalanobisDistance

Mahal. < 10.83 Max 8.46

Cook'sDistance

Cook <_ 1 Max .32

Independence of Residual Durbin-Waston 1-3 1.95

Table 6.30 presents the statistical results, which indicate that the customer engagement

transition is a predictor of the customer emotional attachment stage. The results, as presented

in Table 6.30, shows a significant relationship (B = .521, R2 =.269, p = .000). These results

confirm that the customer engagement transition has a positive impact on the customer

emotional attachment stage, which confirms the second hypothesis of this study.

179

Table 6.62 Regression Model Statistics: Dependent Variable Emotional Attachment

Independent DependentEmotional Attachment

Customer Engagement

B T P value R2 F ratio.521 9.6 .000 .269 92.53

6.12.3 Hypothesis 3

A hotel’s efforts in value creation and personalisation have a positive effect on customer

affective commitment.

The third hypothesis in this study suggested that a hotels input in the personalisation and

value creation transition will have a positive influence on the customer affective commitment

loyalty stage. Before performing the regression test for this hypothesis, the regression

assumptions were checked for the dependent variable, which is customer affective

commitment. All regression analysis assumptions were checked and all met the criteria, as

stated in Table 6.31 and figure 6.11.

Figure 6-14 P-P Plot and Histogram H-3

180

Table 6.63 Regression Assumptions Checked:

Assumption Dependent Variable:Affective Commitment

Test Criteria Current Study

Sample Size N> 104 + M 112 250Normality Skewness and

Kurtosis±1.96 Normal

Normal P-P plots and Histogram

visually assessed

Accepted

Multicollinearity (P V)* VIF VIF < 10 1Tolerance Tolerance >0.10 1

Outliers MahalanobisDistance

Mahal. < 10.83 Max 7

Cook'sDistance

Cook <_ 1 Max .07

Independence of Residual Durbin-Watson 1-3 2.1

Table 6.32, below, presents the result of the regression analysis and it has confirmed that the

personalisation and value creation transition is a significant predictor of the customer

affective commitment stage. These results are, B =.638, R2 =. 405, p = .000. The results

confirm that business efforts in personalization transitions have a positive effect on the

customer affective commitment stage, which confirms the study’s third hypothesis.

Table 6.64 Regression Model Statistics: Dependent Variable Affective Commitment

Independent DependentAffective Commitment

Personalization and Value Creation

B T P value R2 F ratio.638 13.05 .000 .405 170.54

6.12.4 Hypothesis 4

A hotel’s efforts in the recognition and appreciation transition have a positive effect on the

customer belonging stage.

The fourth hypothesis in this study proposed that a hotels input in the recognition and

appreciation transition will have a positive effect on the customer belonging stage. Before

181

performing the regression test for this hypothesis the multiple regression assumptions were

checked for the dependent variable, which is the customer belonging. All regression

assumptions met the proposed criteria in this study, as stated in Table 6.33, and figure 6.12.

Figure 6-15 P-P Plot and Histogram H- 4

Table 6.65 Regression Assumptions Checked:

Assumption Dependent Variable:Belonging CCB

Test Criteria Current Study

Sample Size N> 104 + M 112 250Normality Skewness and

Kurtosis±1.96 Normal

Normal P-P plots and Histogram

visually assessed

Accepted

Multicollinearity (R A)* VIF VIF < 10 1Tolerance Tolerance >0.10 1

Outliers MahalanobisDistance

Mahal. <10.83 Max 5.6

Cook'sDistance

> 1 Max .088

Independence of Residual Durbin-Watson 1-3 2.09

Table 6.33, presents the regression analysis results. These results indicate that the recognition

and appreciation transition is a significant predictor of customer belonging and the customer

182

‘citizenship behaviour’ stages. These results are B =.585, R2 =. . 339, p = .000. The results

confirm that the recognition and appreciation transition has a positive effect on the customer

belonging stage as proposed in this study. This result confirms the study’s fourth hypothesis.

Table 6.66 Regression Model Statistics: Dependent Variable Belonging CCB

Independent DependentBelonging CCB

Recognition and Appreciation

B T P value R2 F ratio.585 11.34 .000 .339 128.72

6.13 Testing Mediation HypothesesThis study has employed the Baron and Kenny (1986) criteria for testing the study’s

mediation hypotheses.

(Baron and Kenny, 1986. p 1176)

The four steps developed, based on Baron and Kenny’s (1986) model, are:

1- The independent variable is a significant predictor of the dependent variable,

2- The independent variable is significantly influencing the mediator

3- The mediator is significant to the dependent variable

4- Independent and mediator variable are significant predictors of the dependent

variable. After the introduction of the mediating variable, if the relationship between

183

Dependent Variable

Independent Variable

Mediator

the independent and dependent variable is reduced to zero it means that the mediation

is perfect and if not zero it means that mediation is partial.

The following hypotheses 5, 6, and 7 will examine the development of customer loyalty from

one stage to the other with the support of the loyalty transitions.

6.13.1 Hypothesis 5

Customer Behavioural Loyalty stage mediates the relationship between customer engagement

and customer emotional attachment stage.

This hypothesis is testing the possibility of the customer moving up from the behavioural

loyalty stage to the second loyalty stage, which is proposed as the emotional attachment

stage. The independent variable in this stage is the customer engagement transition that will

predict the dependent variable, which is the emotional attachment stage. The mediator

variable in this process is the customer behavioural loyalty stage. Before running the analysis,

all regression assumptions stated for this study were examined and none of them showed an

issue, except Mahalanobis and Cook’s distance for outliers. There were only two cases that

showed extreme outlier scores and the researcher decided to remove them from the analysis.

All assumptions are presented in Figure 6.13 and Table 6.35.

184

Figure 6-16 P-P Plot and Histogram H-5

Table 6.67 Regression Assumptions for H 5

Assumption Dependent Variable:Emotional Attachment

Test Criteria Current Study

Sample Size N> 104 + M 112 248Normality Skewness and

Kurtosis±1.96 Normal

Normal P-P plots and Histogram

visually assessed

Accepted

Multicollinearity (BL + CE)*

VIF VIF < 10 1.85Tolerance Tolerance >0.10 .539

Outliers MahalanobisDistance

Mahal. <13.83 (2) Cases Excluded

Cook'sDistance

< 1 Max .08

Independence of Residual Durbin-Watson 1-3 1.92

Testing this hypothesis followed Baron and Kenny’s (1986) recommended steps.

First step: Table 6.36 presents the regression results that confirm the significant relationship

between the predictor variable customer engagement and the dependent variable customer

emotional attachment. Customer engagement is confirmed to have a positive, significant

relationship with customer emotional attachment stage (β = .577, p = .000, R2 = .330, F =

122.65). This checks the first step recommended by Baron and Kenny.

185

Second Step: This step is concerned with the relationship between the independent variable,

which is customer engagement, and the mediator variable behavioural loyalty. Table 6.36

shows the statistical results that confirm the significant relationship between the customer

engagement transition and the customer behavioural loyalty stage (β =.679, p = .000, R2

=.459, F = 210.2). These results confirm the second step recommended by Baron and Kenny.

Third Step: This step is concerned with the relationship between the mediator variable,

which is behavioural loyalty, and the dependent variable emotional attachment. Table 6.36

provides that behavioural loyalty is confirmed to be a significant predictor of the emotional

attachment stage (β =.696, p = .000, R2 =.482, F = 230). These results respond to the third

step recommended by Baron and Kenny.

Table 6.68 Regression Model Statistics: Step 1, 2 and 3

Independent Variable

Mediating Variable Dependent Variable

Behavioural Loyalty (Step 2) Emotional Attachment (Step 1)Customer Engagement

BetaB

t P value

Adj R2

F Beta Β

T P value

AdjR2

FRatio

.679 14.5

.000 .459 210.2 .577 11.07 .000 .330 122.65

Behavioural Loyalty to (EA) (Step 3)

.696 15.18 .000 .48

2 230

Fourth step: This step included all three variables in the equation - the independent variable

(Customer engagement), the mediator variable (behavioural loyalty) and the dependent

variable (emotional attachment). Table 6.37 shows the statistical results from the procedure.

Both the independent and mediator variables stay significant to the dependent variable.

Behavioural loyalty is confirmed to mediate partially the relationship between customer

engagement and emotional attachment stage. The reason is that when adding the mediator

variable to the equation it reduced the beta value between the customer loyalty transition and

customer emotional attachment stage ((β =.194, p = .002, R2 = 500, F = 124.52). In addition,

186

the adjusted R2 has a greater value when adding both customer engagement and behavioural

loyalty, which means that customer engagement works better through behavioural loyalty.

These results confirm and accept the fifth hypothesis of this study

Table 6.69 Regression Model Statistics: Step 4

Independent Dependent (Step 4)Emotional Attachment

Behavioural Loyalty

B T P value R2 F ratio.564 9.20 .000 .500 124.52

Customer Engagement

.194 3.16 .002

6.13.2 Hypothesis 6

Customer Emotional Attachment stage mediates the relationship between personalisation and

value creation and Customer Affective Commitment stage.

This hypothesis is testing the possibility of the development of customer loyalty from the

stage of emotional attachment to the stage of affective commitment with the support of the

personalisation and value creation transition. The independent variable is the personalisation

loyalty transition and the dependent variable, is the affective commitment stage and the

mediator variable is the customer emotional attachment stage. Before conducting the

analysis, all regression assumptions were checked and all met the desired criteria stated in

table 6.38 and the only exception were the Mahalanobis and Cook’s distance, where two

cases were found to have extremely high scores and it was decided to exclude them from the

analysis. All assumptions and tests are presented in figure 6.14 and table 6.38.

187

Figure 6-17 P-P Plot and Histogram H-6

Table 6.70 Regression Assumptions for H 6

Assumption Dependent Variable:Affective Commitment

Test Criteria Current Study

Sample Size N> 104 + M 112 248Normality Skewness and

Kurtosis±1.96 Normal

Normal P-P plots and Histogram

visually assessed

Accepted

Multicollinearity (EA + P.V)*

VIF VIF < 10 2.448Tolerance Tolerance >0.10 .402

Outliers MahalanobisDistance

Mahal. <13.83 Max 10.72

Cook'sDistance

< 1 Max .11

Independence of Residual Durbin-Watson 1-3 2.04

Checking this hypothesis employed Baron and Kenny’s (1986) recommended steps,

First step: Table 6.39 shows the regression results, which confirm the significant relationship

between the predictor variable personalization and value creation and the dependent variable

the customer affective commitment stage. Personalisation and value creation loyalty

transition (business input) is confirmed to have a positive and significant relationship with

188

customer affective commitment stage (β =. 642, P = .000, R2 =. 410, F = 172.5). This result

confirms the first step recommended by Baron and Kenny.

Second Step: This step examines the relationship between the independent variable, which is

the personalisation and value creation transition, and the mediator variable emotional

attachment. Table 6.39 presents the statistical results that approve the significant relationship

between the independent and mediator variables. (β =. 774, P = .000, R2 =. 597, F = 366).

These results check the second step recommended by Baron and Kenny.

Third Step: This step is concerned with the relationship between the mediator variable,

which is the customer emotional attachment stage, and the dependent variable is the customer

affective commitment stage. Table 6.39 states that emotional attachment is confirmed to be

significant to the affective commitment stage (β =. 763, P =.000, R2 =. 581, F = 343). These

results meet the criteria of the third steps recommended by Baron and Kenny.

Table 6.71 Regression Model Statistics: Step 1, 2 and 3

Independent Variable

Mediating Variable Dependent Variable

Emotional Attachment (Step 2) Affective Commitment (Step 1)BetaB

t P value

Adj R2

F BetaB

t P value

AdjR2

FRatio

Personalization and V.C .774 19.14 .000 .

597366 .642 13.13 .000 .41

0172.5

Emotional Attachment (Step 3)

.763 18. 53 .000 .58

1343

Fourth step: This step involved all three variable in the equation, the independent variables

(personalisation and value creation) the mediator variable (emotional attachment) and the

dependent variable (affective commitment). Table 6.40 shows the statistical results for this

step. Both the independent and mediator variables become significant to the dependent

variable. Once the mediator variable is included in the equation, the relationship between the

189

independent and dependent variables is reduced significantly in terms of beta value. (β =.

128, P = .048, R2 =. 595, F = 175.88). The customer emotional attachment stage is

confirmed to partially mediate the relationship between the personalization transition and

affective commitment stage. Furthermore, the adjusted R2 has a larger value when including

both personalisation and emotional attachment, which means that the personalisation

transition works better through emotional attachment. These results confirm and accept the

sixth hypothesis of this study.

Table 6.72 Regression Model Statistics: Step 4

Independent Dependent (Step 4)Affective Commitment

Emotional Attachment

B T P value R2 F ratio.664 10.28 .000 .595 175.88

Personalization V.C

.128 1.98 .048

6.13.3 Hypothesis 7

Customer Affective Commitment stage mediates the relationship between customer

recognition and appreciation and Customer Belonging stage.

This hypothesis aims to test the final stage of the proposed loyalty model in this study. This

hypothesis is examining the possibility that a customer in the affective commitment stage can

move up to the ultimate stage of loyalty stated as belonging in this current research. This

process includes examining the direct effect of the recognition and appreciation transition

(Independent variable) on the customer belonging stage (Dependent variable) and the

contribution of affective commitment (mediator variable) in the development process. Prior

to the analysis, the study’s regression assumptions as stated have been examined, and all

successfully met the study criteria. All assumption results are presented in figure 6.15 and

table 6.41.

190

Figure 6-18 P-P Plot and Histogram H-7

Table 6.73 Regression Assumptions for H 7

Assumption Dependent Variable:Belonging CCB

Test Criteria Current Study

Sample Size N> 104 + M 112 248Normality Skewness and

Kurtosis±1.96 Normal

Normal P-P plots and Histogram

visually assessed

Accepted

Multicollinearity (AC + RA)*

VIF VIF < 10 1.54Tolerance Tolerance >0.10 .646

Outliers MahalanobisDistance

Mahal. <13.82 Max 8.24

Cook'sDistance

< 1 Max .08

Independence of Residual Durbin-Watson 1-3 1.82

Testing this hypothesis followed (Baron and Kenny, 1986) endorsed steps,

First step: Table 6.42 shows the regression results that confirm the significant relationship

between the predictor variable - the recognition and appreciation transition - and the

dependent variable, the customer belonging and the customer citizenship behaviour stage.

Recognition and appreciation are approved to have a positive and significant relationship

with the customer belonging stage (β = .60, P = .000, R2 = .357, F = 138.23). This result

checks the first step recommended by Baron and Kenny.

191

Second Step: This step is concerned with the relationship between the independent variable,

which is recognition and appreciation and the mediator variable customer affective

commitment stage. Table 6.42 shows the statistical results that show the significant

relationship between the independent and mediator variables. (β = .595, P = .000, R2 = .352,

F = 135). These results approved the second step recommended by Baron and Kenny.

Third Step: This step is concerned with the relationship between the mediator variable,

which is the customer affective commitment stage and the dependent variable, the customer

belonging stage. Table 6.42 states that the affective commitment stage is confirmed to be

significant to the customer belonging CCB stage (β = .671, P = .000, R2 = .448, F = 201).

These results respond to the third steps recommended by Baron and Kenny.

Table 6.74 Regression Model Statistics: Step 1, 2 and 3

Independent Variable

Mediating Variable Dependent Variable

Affective Commitment(Step 2) Belonging CCB(Step 1)BetaB

t P value

Adj R2

F BetaB

t P value

AdjR2

FRatio

Recognition and Appreciation

.595 11.62

.000 .352 135 .60 11.75 .000 .357 138.23

Affective Commitment (Step 3)

.671 14.19 .000 .448 201.42

Fourth step: This step included all three variables in the equation, the independent variable

(recognition and appreciation transition), the mediator variable (customer affective

commitment stage) and the dependent variable (customer belonging CCB stage). Table 6.43

displays the statistical results for this step. Both the independent and mediator variables are

significant to the dependent variable. After including the mediator variable in the equation,

the relationship between the independent and dependent variables decreased significantly in

192

terms of the standardised beta value. (β =. 310, P = .000, R2 =. 508, F = 128.72). The

Customer affective commitment stage is confirmed to partially mediate the relationship

between the recognition and appreciation transition and customer belonging CCB stage. As

well, the adjusted R2 has a greater value when including both recognition and appreciation

transition and affective commitment, which means that recognition and appreciation work

better through affective commitment. These results confirm and accept the seventh and final

hypothesis of this study.

Table 6.75 Regression Model Statistics: Step 4

Independent Dependent (Step 4)Belonging CCB

Affective Commitment

B T P value R2 F ratio .486 8.75 .000 .508 128.72

Recognition and Appreciation

.310 5.59 .000

6.13.4 Summary of Hypothesis Testing

Table 6.76 Summary of Hypothesis Testing

Hypotheses R2 P

Values

Results

H1: A hotel’s efforts in the attracting and acquiring transition have a

positive effect on customer behavioural loyalty.

.592 0.000 Accepted

H2: A hotel’s efforts in the customer engagement transition have a .272 0.000 Accepted

193

positive effect on customer emotional attachment.

H3: A hotel’s efforts in value creation and personalization have a

positive effect on customer affective commitment.

.407 0.000 Accepted

H4: A hotel’s efforts in the recognition and appreciation transition

have a positive effect on the customer belonging stage.

.342 0.000 Accepted

H5: Customer Behavioural Loyalty stage mediates the relationship

between customer engagement and customer emotional attachment

stage.

.500 0.000

Accepted.002

H6: Customer Emotional Attachment stage mediates the

relationship between personalization and value creation and

Customer Affective Commitment stage.

.595 0.000

Accepted0.048

H7: Customer Affective Commitment stage mediates the

relationship between customer recognition and appreciation and

Customer Belonging stage.

.508 0.000

Accepted0.000

6.14 Cluster Analysis

The main objective of cluster analysis is “to find an optimal grouping for which the

observations or objects within each cluster are similar, but are dissimilar to the objects in

other clusters” (Babu et al. 2014, p. 424). In this study, the aim was to identify different

groups of customers based on their level and strength of loyalty to their preferred hotel. In

order to perform this type of analysis, there are two widely known methods: hierarchical and

194

K-means cluster analysis. This study used the K-means clustering method, which is defined

as “A group of non-hierarchical clustering algorithms that work by partitioning observations

into a user-specified number of clusters and then iteratively reassigning observations until

some numeric goal related to cluster distinctiveness is met” (Hair et al. 2014.p 417). This

study performed an analysis using 2, 3, 4, and 5 clusters and found that the 3 cluster solution

is the best fit due to the convergence achieved during the iterations. When running the

analysis for 2 clusters the convergence was achieved at 9 iterations, for 3 clusters at 6

iterations and both 4 and 5 exceeded 10 iterations.

Table 6.45 and Figure 6.16, show the outcome of the K-mean cluster analysis in terms of

calculating the mean of all four variables included within their final cluster. This step

provides a description of the three groups of study participants as follows.

Cluster 1: These customers could be described as truly loyal with high scores in each stage

Cluster 2: These customers could be described as becoming loyal but where their loyalty is

principally at the behavioural stage

Cluster 3: These customers could be described as not yet loyal with low scores on all stages.

Table 6.77 Final Cluster Centres

Cluster

1 2 3

Behavioural Loyalty 6.48 5.04 3.63

Emotional Attachment 5.77 3.69 2.46

Affective Commitment 6.07 4.42 2.58

Belonging CCB 5.64 3.75 2.08

195

Figure 6-19 Final Cluster Centres

Table 6.46 presents the distances between the final cluster centres. This table explains the

relationship, similarities and difference between the clusters. The results shown in table 6.46

states that cluster 3 and 1 are most different, whereas cluster 2 and 3 are almost alike as well

as cluster 2 and cluster 3.

Table 6.78 Distances between Final Cluster Centres

Cluster 1 2 3

1 3.557 6.629

2 3.557 3.119

3 6.629 3.119

Table 6.47 shows that the vast majority of the study participants belong to cluster one, which

indicates 90 participants, and to cluster two with 109 participants. These two clusters

represent the most loyal groups in this study. The third cluster has only 51 participants and it

196

represents the least loyal customers in this study. This means that the majority of the

participants involved in this study expressed a higher sense of loyalty to their preferred hotel.

Table 6.79 Number of Cases in each Cluster

Cluster 1 90.000

2 109.000

3 51.000

Valid 250.000

Missing .000

6.14.1 Cluster ANOVA Result:

After the formation of the participants' groups using the K-mean clustering method, the

researcher completed the cluster membership on IBM SPSS 25 statistics where every

participant is assigned to their cluster. Then the researcher performed the ANOVA test to

examine the mean, standard deviation, F-Ratio and the significance level existing between

clusters and the study variables, which in this test are the customer loyalty stages. Table 6.48,

shows all the statistics results, Cluster 1, for all the four variables, expresses high scores in

the mean value, cluster 2 shows lower scores in terms of the mean value and the third cluster

shows the least scores for the mean value. These mean values indicate the differences

between clusters in terms of their loyalty level and strength. All four variables yield

significant values when comparing them with the study clusters and all scores .000 in terms

of the P-values.

Table 6.80 Loyalty stages In Cluster Analysis

Variable Clusters N* Mean Std.

Deviation

F-

Ratio

Sig.

Behavioural Loyalty 1 90 6.47 .58 169.68 .000

2 109 5.04 .98

3 51 3.62 1.12

197

Emotional

Attachment

1 90 5.76 .87 306.31 .000

2 109 3.68 .78

3 51 2.46 .75

Affective

Commitment

1 90 6.06 .79 297.06 .000

2 109 4.42 .87

3 51 2.57 .78

Belonging

CCB

1 90 5.64 1.10 213.44 .000

2 109 3.75 1.01

3 51 2.07 .80

6.14.2 Crosstabs Analysis

The researcher conducted a series of Cross Tabulation tests, which were used to test the

relationships between the study clusters and to highlight the differences between cluster

groups to the study participants’ characteristics and profiles. The Chi-Square statistic

indicates that there are no significant differences existing between the study clusters when

compared to the participants’ characteristics and profiles. These tests included the

participant’s gender, marital status, participant’s education level, type of hotel, length of

relationship and number of visits. Table 6.49 summarises all these results and the full tests

are shown in the appendix section.

Table 6.81 Cross Tabulation Summary

Cross tabulation

Cluster

1

Cluster

2

Cluster

3

Chi-Square Tests

(Pearson)

Gender Male 73 88 47 .159

Female 17 21 4

Marital

Status

Married 69 79 39 .641

Single 20 30 12

Types of

Hotel

Independent 37 39 18 .690

Chain 53 70 33

198

Education

Level

High school 2 3 4

.078University/College 56 48 29

Postgraduate 30 56 17

Length of

Relationship

Less than a year 31 31 22

.377

One to Two years 16 24 12

Three to Five years 18 27 10

More than Five

Years

25 27 7

Number of

Visits

One to Three times 34 48 25

.524Four to six times 23 30 14

More than six times 33 31 12

6.15 Conclusion

This chapter presented the results from the study main instrument. This study targeted

participants who have a preferred hotel in the Kingdom of Saudi Arabia. The study

instrument supported two languages, Arabic and English, and it was delivered to potential

participants via multiple means. After excluding non-engaged and incomplete questionnaires,

the total usable and completed questionnaires were 250, which accounted for 32.85% of the

total participants. Participants were mainly Saudis with a small percentage of other Arab and

non-Arab participants. 83.2% of the study participants were male, 16.8% were female and

74.8% were married, and the rest reported as singles. In terms of age, the majority of the

participants were between the ages of 18 and 49. Most of the participants were highly

199

educated and 233 of them were university degree holders and postgraduates. In terms of

nationality, 219 participants stated themselves as Saudi Citizens, which accounted for 87.6%

of total participants. 11 participants were from other Arab countries such as Lebanon and

Egypt and this accounted for 4.4% and the rest were non-Arab participants. The study has

also examined the participants profiling in terms of their preferred hotel types, length of

existing relationship, number of visits, purpose of travel, and their overall experiences

regarding their current/last visit. These data have assisted the researcher to have a better

understanding of the study participants.

The second stage of the analysis was The Exploratory Factor Analysis. This process has

given the researcher four factors for the loyalty stages and four factors for the loyalty

transitions, as initially proposed. Each factor has at least three items, and they met the study

stated assumptions, such as KMO, Bartlett's test of sphericity, and the accepted item loading

values. Then the researcher took these eight constructs and checked them for scale reliability.

All of them met the study criteria such as Cronbach's alpha value, item-total correlation and

the inter-item correlation values. Following the scale reliability test, descriptive and

correlation analyses were conducted followed by series of T-tests and ANOVAs to determine

any sample differences.

The researcher then used regression analysis to test the study’s conceptual model and

hypotheses. This test enabled the researcher to test the study seven hypotheses. The study

used simple regression for the first four hypotheses where the researcher tested the direct

relationships between the loyalty transitions and loyalty stages. All of them were positively

significant and showed strong and positive relationships. The second regression test was the

multiple regression test, which enabled the researcher to examine the study mediation

hypotheses. The last three hypotheses were employed to examine the idea that the loyalty can

actually be developed and customers can develop their loyalty and businesses can identify the

200

stage of loyalty of their customers. In addition, the researcher conducted cluster analysis and

then used one way ANOVA and crosstabulation to compare, test and check for any

differences between these groups. This test helped the researcher to identify three different

groups of participants and each group represents a different state of loyalty.

Chapter 7: Discussion and Conclusion

7.1 Introduction

The primary goal of this chapter is to highlight and discuss the results presented in the

findings chapter. This chapter will consider the main findings that the research has revealed.

It will start with providing answers to the original research question and objectives drawn

from the findings. It will present the outcome of the study, which stated that there are four

loyalty stages and four transitions, and will discuss the confirmed model that suggested

customer loyalty can be developed and strengthened. Additionally, the chapter will elaborate

more on discussing the study findings by separating the response to the research question into

201

four main sections, where every section will discuss one stage and one transition of customer

loyalty. In addition, it will include the formation and the development that occurs between the

customer loyalty stages. It will conclude with the research’s most fascinating theoretical and

methodological contributions alongside practical and managerial implications and will

discuss the research limitations and future research opportunities.

7.2 Review of the Study’s Findings

This research has gone beyond the current understanding of customer loyalty and has

extended the meaning of the concept, and enlightened some of the grey areas by taking the

current disparate approaches and combining these into a holistic theoretical model. The

research aimed to explore the complexity of customer loyalty in the hotel industry and it has

looked at this topic from different points of view. The main objective of this research was to

fulfil the following questions:

How does loyalty develop? Can we identify the potential stages and transitions that support

the development of loyalty in the hotel industry highlighting business inputs and the

characteristics of each stage of loyalty?

The main aim of the research was to understand the process of the development of customer

loyalty. In so doing, the research investigated the differences that exist between loyal

customers at different stages of loyalty in terms of their actions, commitment, attachment and

sense of belonging to their preferred business. In order to be able to examine these different

types of loyalty, the research also took into consideration the inputs and practices such as

customer engagement, personalisation and recognition that businesses have to offer to their

customers and their effects on the level and strength of customer loyalty. This research

identified four customer loyalty stages and four loyalty transitions as well as confirming the

202

original conceptual model that suggested the idea of the development of customer loyalty, as

will be explained in more detail in this chapter.

This study has revealed a series of intriguing and interesting findings and has stressed the

importance of human interactions and relationships in the development of customer loyalty,

as well as confirming and validating the four loyalty stages scales and four transitions scales

as follows:

▪ The Attract and Acquire Transition (AAT) inputs were found to be a significant

predictor of the Behavioural Loyalty Stage (BLS) in the hotel industry. This

transition has a positive effect on customer behavioural loyalty (B 0.77, R2 0.59, P

value 0.000, F 360.2, T 18.97).

▪ The Customer Engagement Transition (CET) was revealed to be a significant

predictor of the Customer Emotional Attachment Stage (CEAS) for their preferred

hotel. The Customer Engagement Transition has been confirmed to have a

positive effect on the Customer Emotional Attachment Stage (B = .521, R2 =

0.269, P = 0.000, F = 92.53, T= 9.6).

▪ The Personalisation and Value Creation Transition (PVCT) was confirmed to be a

significant predictor of the Customer Affective Commitment Stage (CACS) of

loyalty. It has shown a positive effect on the customer affective commitment stage

(B = .638, R2. =0. 405, P = 0.000, F = 170.54, T = 13.05).

▪ The Recognition and Appreciation Transition (RAT) was found to be a significant

predictor of customer belonging and customer citizenship behaviour. This

transition was confirmed to have a positive effect on the Customer Belonging

Stage (CBS) of loyalty (B = 0.585, R2. = 0. 339, P = 0.000, F = 128.72, T = 11.34)

After assessing the direct relationships between the loyalty transitions, which represents the

business inputs and effort made by a business to gain and strengthen customer loyalty, and

203

the various stages of customer loyalty using simple regression, the research then examined

the idea of the development of customer loyalty and the movement from one stage to the

other.

The research findings supported this idea and revealed a series of significant findings. At this

stage of the analysis, the researcher adopted the Baron and Kenny (1986) method to test the

study’s mediation hypotheses.

▪ Customer Behavioural Loyalty stage mediates the relationship between customer

engagement and customer emotional attachment stage. Therefore, in order for

hotels to obtain an emotionally attached customer, this research confirmed that the

hotel should first gain a behaviourally loyal customer. Behavioural loyalty plays a

significant role and it is shown to partly mediate the relationship between

customer engagement and emotional attachment. The adjusted R2 has a greater

value (R2. 0. 500) and the Customer engagement beta value went down to (β.194)

when adding both customer engagement and behavioural loyalty, which means

that customer engagement works better through behavioural loyalty.

The Customer Emotional Attachment stage mediates the relationship between

personalization and value creation and Customer Affective Commitment stage.

Thus, to have an affectively committed customer in the hotel industry it appears,

as confirmed in this study, that the hotel needs first to develop an emotionally

attached customer. This study shows that the emotional attachment stage plays an

important part in the process of developing an affectively committed customer.

When adding emotional attachment to the personalisation and value creation

transition, the overall adjusted R2 has shown a greater value of (R2 .595) and the

personalisation and value creation beta value went down to β.128. These results

confirm that emotional attachment partially mediates the relationship between the

204

customer personalisation transition and the affective commitment stage and

confirmed that personalisation works better with customers who are already

emotionally attached.

▪ The Customer Affective Commitment stage mediates the relationship between

customer recognition and appreciation and the Customer Belonging stage.

Therefore, this transition effect will be stronger when working with a customer

who is already an affectively committed customer of the organisation. This study

presents that when adding both the recognition and appreciation transition and the

affective commitment stage to the regression the adjusted R2 has obtained a

greater value of R2 .508 and the recognition and appreciation beta value went

down to β ).310. These results confirmed that affective commitment partially

mediates the relationship between the recognition transition and the belonging

stage and so confirms recognition and appreciation works better on customers

who are already at the affective commitment stage.

Below is the research model that has been tested and confirmed,

Figure 7-20: Research Model

205

7.3 Discussion of the Study’s finding

This research has studied the concept of loyalty and the complexity of its meaning by

investigating the current Literature, applications and existing practices. It has taken an

approach that looks beyond behavioural loyalty and expands it into all aspects of customer-

business relationships. After considerable investigation and thought, the researcher arrived at

a conceptual model proposing the idea of the customer loyalty stages and transitions. Then,

the researcher developed a semi-structured interview protocol to explore the possibility of the

206

Behavioural Loyalty

Belonging CCB

Affective Commitment

Emotional Attachment

Attract and Acquire

Recognition and Appreciation

Personalization and Value Creation

Customer Engagement

CustomerBusiness

Loyalty

Development

H1: B 0.77, R² 0.59, P 0.000

H2: B 0.52, R² 0.269, P 0.000

H3: B 0.638, R² 0.405, P 0.000

H4: B 0.585, R² 0.339, P 0.000

H5: R² 0.500

H7: R² 0.508

H6: R² 0.595

B 0.564

B 0.486

B 0.664

workability and feasibility of the proposed conceptual model. This process gave the

researcher the confidence needed for the proposed conceptual model. Therefore, the

researcher investigated the literature once more in order to develop the eight scales needed

for the main study instrument. The researcher developed items for eight scales with some

items drawn from the literature and some items added from the preliminary study interviews.

The researcher used the Q sort method and employed 40 participants to validate the items for

these chosen scales. This method resulted in purified and trusted scales that the researcher

had confidence to use in the main study instrument. Following this, the researcher conducted

a pilot study that included experts from academia and industry to establish the validity of the

survey instrument. The survey was then ready to be launched to the public.

Figure 7-21: The Scale Development Journey

After launching the main instrument and receiving survey responses, the research used the

different types of analysis that are explained in detail in the previous chapter. This process

confirmed the scales for the four loyalty stages and four loyalty transitions and verified the

proposed conceptual model as well as confirming all the research hypotheses.

The following section will go through the seven research hypotheses which will include

highlighting all four customer loyalty stages and four loyalty transitions. It will start with the

207

Scale Reliability

Exploratory Factor Analysis

Pilot Study

Q Sort Method

Scales from Literature

Preliminary Study

Literature Review

direct relationship between each stage and its transition and then will discuss the hypotheses

that explain the development of customer loyalty.

7.3.1 Exploring the Customer Loyalty Stages in the Hotel Industry:

The Behavioural Loyalty Stage and its antecedents Attract and Acquire

The analysis found that the behavioural loyalty scale is formed from two main existing

scales: five items from the behavioural intention battery scale developed by Zeithaml et al.

(1996), one item from the emotional attachment scale presented in Hyun, and Kim (2012),

which was adopted from Cicirelli (1995) and Vlachos et al. (2010), plus two items developed

for this study from an understanding of the interviews and literature review. This scale

consisted of eight items representing customer recommendation, first choice consideration,

and positive word of mouth, suggestion, feeling good and happy with service, trust and

positive memories. The final scale of behavioural loyalty aligned with the some of the

meanings of both behavioural and attitudinal loyalty as discussed by Chaudhari and Holbrook

(2001), Zeithaml et al. (1996), and Ramli and Sjahruddin, (2015).

This scale has an eigenvalue of 15.48 and explains 53.4% of the variance. All eight items

strongly loaded on this factor in the range between 0.65 and 0.94, which is considered to be

high. The reliability test showed strong positive results with a Cronbach’s Alpha of 0.95,

which is considered to be excellent (George and Millery, 2003). Furthermore, the item-total

correlations exceeded the minimum of 0.50 as recommended by Robinson (1991), and their

values ranged between 0.689 and 0.895. The inter-item correlations also surpassed the

minimum needed values of 0.30 for all items, again as recommended by Robinson (1991).

The scale has therefore shown strong reliability even though it contains items from a number

of different sources.

208

This scale was measured on a 7 point scale where 1 represents strongly disagree and 7

strongly agree. The scale mean score was 5.27 with a standard deviation of 1.38. These

figures indicate that the people involved in this study are considered to be behaviourally loyal

to their preferred hotel. This stage of loyalty showed the highest scores of all the loyalty

stages, which was as expected according to the initial conceptual model.

Based on the T-tests of difference conducted, this scale showed no significant differences

between participant’s gender, marital status or type of preferred hotel. However, it is

interesting to note that although not statistically significant, female participants have actually

rated their behavioural loyalty slightly higher than the male participants with the mean of

5.61 compared to the male score of 5.19. Additionally, participants whose preferred hotel is

categorised as a chain rated their behavioural loyalty slightly higher than those who chose an

independent hotel with a mean of 5.29 compared to 5.22. Participants’ level of education,

length of relationships with the hotel and number of visits have shown no significant

differences among the study participants, even though there are small differences in the mean

values.

Attract and Acquire is considered to be the first transition in this loyalty model. This scale

represents the first service that the businesses intend to provide in terms of attracting and

acquiring customers. This scale has been adapted from an existing scale - the lodging quality

index developed by Getty and Getty (2003) and used by Ladhari (2009). This scale is formed

of nine items, which all belong to the previous scale and has shown great reliability and

validity. This scale represents some of the aspects of the SERVQUAL measurement scale

developed by Parasuraman et al. (1985).

The scale had an eigenvalue of 17.16 and explained 49% of the variance among all the four

transition scales. Scale items were strongly loaded and their loading values ranged between

209

0.42 and 0.99. These items represent hotel interior and exterior quality, environment,

atmosphere, front desk, employee outfits, employee willingness to serve, charges

explanations and outdoor surrounding attractiveness. The scale reliability test showed a

Cronbach’s alpha of 0.918, which is an excellent score (George and Millery, 2003).The item-

total correlation showed strong scores ranged between 0.56 and 0.80 and the inter-item

correlations also showed great scores that exceeded the minimum values needed of 0.30

(Robinson, 1991). This scale has demonstrated high and strong validity and reliability and

clearly measures the actions hotels take as the first transition to customer loyalty in the hotel

industry.

Again this scale was measured on a 7 point scale where 1 represents strongly disagree and 7

strongly agree. The scale scored a relatively high score in terms of the mean (5.43) and a

reasonable standard deviation (1.24). These two figures highlight that participants expressed

positive responses to these scale items and they clearly agreed that they were receiving the

level of service and amenities that would encourage them to be behaviourally loyal.

This scale was also tested to identify any differences between the participants’ gender,

marital status and type of preferred hotel. In terms of gender and marital status, there were no

significant differences. Testing with the type of hotel chosen revealed an interesting fact that

there is a significant difference between independent and chain hotels (p 0.024) where

participants have rated the chain hotels higher at 5.55 compared to independents at 5.23,

suggesting that chain hotels do more at this stage to encourage repeats and referrals. On the

other hand, participants showed no significant differences in terms of their education level,

length of relationship and number of visits.

210

Hypothesis 1: A hotel’s efforts in the attracting and acquiring transition have a positive

effect on customer behavioural loyalty.

As the initial model proposed, this study found a positive and significant relationship between

the first stage of behavioural loyalty and the first transition of attract and acquire. These two

scales were found reliable and trusted to measure this stage and transition. Regression

analysis confirmed that a hotel’s efforts in the transition of attract and acquire have a positive

effect on their customer behavioural loyalty stage (B 0.77, R2 .59, T 18.97, F ratio 360.20 P

value 0.000). Therefore the first hypothesis is confirmed and accepted. As in a previous study

(Stefano et al. 2015), customer favourable behaviours are considered as the results of the

service quality delivered measured using the SERVQUAL dimensions (Parasuraman et al.

1985). The Attract and Acquire transition scale items partly came from the SERVQUAL

dimensions including tangibles, reliability and responsiveness. Service quality was also found

by Riadh and Ladhari (2009) to have both direct and indirect effects on a customer’s

behavioural intentions.

This hypothesis, therefore, confirms previous research that suggests that a hotel can take a

series of actions to attract and acquire customers, which will lead to a basic level of

behavioural loyalty where customers will return to the hotel and will recommend it to others.

The Emotional Attachment Stage and its antecedent Customer Engagement

The second stage of loyalty confirmed in this study is referred to as customer emotional

attachment. The final scale is made up mainly from an existing scale presented in Hyun and

Kim (2012), which was adapted from Cicirelli (1995) and Vlachos et al. (2010). To this was

added one item created from an understanding of the literature and interviews. This scale is

formed of five items representing feeling comfortable, the development of positive

relationships, expressing passionate interest, faith in service providers and intimate

relationships. This scale, in terms of overall meaning, matches the explanation of emotional

211

attachment by Hyun, and Kim (2012) in that it “indicates individuals’ psychological instincts:

to stay close to or maintain relationships with comfortable/supportive and reliable/trustworthy

persons” (P 164), as well as Bowlby’s (1979) description of a passionate relationship. It also

aligns well with descriptions such as positive feeling, trust and reduction of perceived risk

and safety (Pavlos et al. 2010) and a long personal relationship from Belk (1988).

This scale has an eigenvalue of 1.136 and explains 3.91% of the variance. All items assigned

to this factor score highly in terms of the loading values ranging between 0.48 and 0.758. The

scale was tested for scale reliability with a Cronbach’s Alpha of 0.866, which is a good score

as recommended by George and Millery (2003). The item-total correlation exceeded the

minimum scores of 0.50 and ranged between 0.62 and 0.73 and the inter-item correlations

have surpassed the minimum required value of 0.30 (Robinson, 1991). This scale has

demonstrated high and strong reliability and validity, which enables it to be used as a good

measure of customer emotional attachment in this and other studies.

This scale was measured on a 7 point scale where 1 represents strongly disagree and 7

strongly agree. The mean score of this scale was lower than the first stage of loyalty

(Behavioural Loyalty) which was as expected. The mean score is 4.18, which suggests that

participants have rated their relationship to their preferred hotel as a medium relationship just

above the midpoint of 4.

This scale was subjected to T-tests to identify if any significant differences existed among

participant’s gender, marital status and types of preferred hotel. In this case, there were no

significant differences but there were some interesting results: females were found to be

slightly more emotionally attached to their preferred hotel with a mean of 4.37 compared to

the male value of 4.15. Participants also tended to be slightly more emotionally attached to

independent hotels (M 4.26) than to chain hotels (M 4.13). ANOVA was also employed to

212

test participant’s differences in terms of their level of education, length of relationship and

number of visits. Education level and number of visits were found to have no significant

differences but the length of relationship was found to have a significant difference (P 0.016)

with mean scores as follows: less than a year relationship M 4.26, three to five years M 3.92,

more than five years M 4.63. This does seem to suggest that a longer relationship of over five

years leads to greater emotional attachment but does not explain the drop between 3 and 5

years.

The second transition represents the service provider’s inputs and efforts in serving their

customer but with a greater personal connection. The scale was formed of items from the

Personal Connection Courteous Expressions items in the service provider sociality scale

presented and developed by Chas et al. (2000) and another item was originally from Martin

(1986) presented in Ariffin and Maghzi’s (2012) study. The final scale consisted of three

items representing service provider sympathy, careful listening to the customer and knowing

their customers well by their name and nationality. This scale overall matches the description

of customer engagement by Nammir et al. (2012). Customer engagement is seen as “a higher-

order construct, and it comprises of four components, namely, vigour, dedication, absorption,

and interaction” (p. 30). Vigour is explained in the item that refers to the willingness and

effort to listen and interact, dedication may be explained by the sympathy given and

interaction explained by knowing each other’s backgrounds and names.

This scale has an eigenvalue of 1.01 and explained 2.88% of the variance in the loyalty

transitions. The scale items expressed strength in terms of their loading values, which ranged

between 0.47 and 0.69. This scale was subjected to a scale reliability test and it performed at

a more than acceptable level with a Cronbach’s alpha of 0.772. The item-total correlation also

showed strong values generally exceeding the minimum value of 0.50 even though one item

213

was slightly below with score of 0.494. The inter-item correlation has also met the

recommended values suggested by Robinson (1991).

This scale has been measured on a 7 point scale where 1 represents strongly disagree and 7

strongly agree. The scale scored a high score with a mean of 5.06 and a standard deviation of

1.39 compare to personalisation (M 4.79) and recognition transitions (M 3.71) but lower than

the first transition attract and acquire (m 5.43). These two figures indicate that participants

have experienced a good level of customer engagement that is obvious in their positive

responses to the scale items.

T-tests were employed to do further analysis for this scale in terms of participants profiling

and to highlight any differences existing based on the participants’ gender, marital status and

types of preferred hotel. There were no statistically significant differences between

participants’ gender, marital status and types of preferred hotel. However, participants

showed a slightly higher customer engagement in chain hotels, which is interesting (M = 5.16

compared to M = 4.91). ANOVA was used to examine the differences among participants in

terms of their different level of education, length of relationship and number of visits. In all

three, there were no significant differences between the different groups.

Hypothesis 2: A hotel’s efforts in the customer engagement transition have a positive effect

on customer emotional attachment.

As proposed in the initial model, this is the second direct relationship hypothesis in this study

and the study found a positive and significant relationship between the hotel’s efforts in

customer engagement and the development of customer emotional attachment. Regression

analysis was employed to test this hypothesis and it showed that a hotel’s efforts in the

transition of customer engagement have a positive effect on the customer’s emotional

attachment loyalty stage (B = .521, R2 = 0.269, T = 9.6, F = 92.53, P = .000). Therefore, the

214

second hypothesis is confirmed and accepted. These results align well with Nammir et al.

(2012) discussion regarding social exchange theory. They stated that regular and positive

exchange is anticipated to bring the parties closer to one another and accelerate a lasting

relationship:

“Greater interaction quality is expected to facilitate interpersonal and social bonding, which in turn is also expected to foster quality. This implies that greater interaction quality will breed greater performance. The closeness and elevated relationship that is expected to be cultivated from greater interaction quality, this is posited to enhance the perception of the core relationship performance” (p .31)

This hypothesis, therefore, confirms previous research that suggests that a hotel can

encourage staff to enter into greater and more meaningful interaction with customers, which

will, in turn, lead customers to feel a greater feeling of emotional attachment to the hotel and

to look for a longer relationship.

The Affective Commitment Stage and its antecedents Personalization and Value

Creation

The third stage of customer loyalty in the hotel industry confirmed in this study is the

affective commitment stage. This scale included items from the affective commitment scale

developed by Schechter (1985) and Harrison-Walker (2001) and affective commitment

definitions by Dwyer et al. (1987) and Moorman et al. (1992), with two items from Hyun and

Kim’s (2012) emotional attachment scale adapted from Cicirelli (1995) and Vlachos et al.

(2010). The final scale consisted of six items representing a customer’s desire to maintain a

relationship and their willingness to sacrifice, their concern about the success and

achievement of goals of their preferred hotel and types of attachment to the service providers.

This scale matches the definition of affective commitment widely known from the literature

“as an emotional response that originates from the psychological identification and

attachment of customers to a brand” (cited in Iglesias et al. 2019, p 345). Furthermore, it is

215

aligned with the commitment definition from Moorman, Zaltman, and Deshpande (1992) as

“an enduring desire to maintain a valued relationship" (p 316) as well as organisational

commitment from Buchanan (1974) who “similarly conceptualized organizational

commitment as an affective attachment to the goals and values of the organization” (p 533)

This scale achieved an eigenvalue of 2.01 and explained 6.94% of the variance among the

other three loyalty stages. The six items were strongly loaded on this factor ranging between

0.406 and 0.80. This scale was subjected to scale reliability and achieved a high Cronbach’s

Alpha of 0.910, which is considered to be an excellent score by George and Millery (2003).

The item-total correlation ranged between 0.66 and 0.808, which exceeded the minimum

score of 0.50 by Robinson (1991) and the inter-item correlation as well as surpassing the

minimum recommended value of 0.30 by Robinson (1991). The scale has shown strong

reliability and validity and so can be used with confidence in this and future research.

This scale was measured on a 7 point scale where 1 represents strongly disagree and 7

strongly agree. The mean score of this scale is 4.63, which represents how strongly

participants feel that they are affectively committed to their chosen hotel. This score is stating

that they have a positive and good relationship with their hotel. T-test and ANOVA were

employed to identify differences that may occur between the study’s different groups. In

terms of gender, marital status and types of hotel, there was no significant difference existing,

however, female participants were found to be more affective committed to their hotel with a

score of M= 4.97 compared to the male participants M= 4.56. ANOVA was used to test

participants’ education level, length of relationship and number of visits and there were no

significant differences existing, although there were some differences occurred in terms of

the mean scores.

216

Personalisation and value creation transition is the third transition of the customer loyalty

transitions that represents higher and stronger effort and input from the hotel service

providers to their current customer. The final scale items in this study were shaped from

multiple existing scales and Literature. These scales are personalisation by Scanlan, and

McPhail, (2000), Service Provider Sociality Scale by Chas et al. (2000), Ariffin and Maghzi,

(2012) Ahearne and Jones2007) lodging quality index scale by Getty and Getty (2003) and

items from the literature of Oh et al. (2007) and Prahalad and Ramaswamy, (.2004).

Although, this scale is grouped from items belong to different scales, it has shown strong

reliability, validity and correlation. The meaning of the scale matches some of the existing

literature such as the definition of personalisation according to Scanlan and Mcphail (2000)

as “receptionists who personally recognize the guest, go beyond what is expected, and make

the guest feel really special” (p. 498) as well as the co-creation defined as “the joint creation

of value by the company and the customer; allowing the customer to co-construct the service

experience to suit her context” (Prahalad and Ramaswamy, 2004, p. 8). Furthermore, the final

scale of personalization matches Ariffin and Maghzi (2012) meaning of hospitality,

“Hospitality is concerned with personalized services and comfort for the satisfying of

physiological and psychological needs” (p. 197). Additionally, customising the service to suit

special requirements and getting special status is important, for example, having a hotel

membership club where superior benefits were collected (Berry, 1995; Bitner, Booms and

Tetreault, 1990; Czepiel, 1990; Gwinner et al. 1998 cited in Scanlan, L., and Mcphail, J.

2000).

There are eight items in this scale with an eigenvalue of 1.2 and explaining 3.45% of the

variance. These items were positively and strongly loaded on this factor ranging between

0.42 and 0.85. These items represent customer ability to co-construct their experiences,

customised services, meeting special requirement, genuine service, feeling special and

217

important and warm services. This scale was tested for scale reliability and the results were,

Cronbach’s Alpha score of .933, which is considered to be an excellent score (George and

Miller, 2003). The scale item-total correlations were strong and the scores ranged between

0.70 and 0.82, and the inter-item correlations were also strong and exceeded the minimum

recommended value of 0.30 (Robinson, 1991). This scale has demonstrated strong reliability,

validity and correlations and was used for further analysis in this study as a measurement of

the personalisation transition.

This scale, as the other scales used in this study, has been measured on a 7- point scale where

1 represents strongly disagree and 7 strongly agree. This scale has good and positive scores,

with a mean score of 4.79, which was less than first two loyalty transition Attract and acquire

and the customer engagement transitions, which was expected in this study main model as

this transition in this study is considered to be high in the customer loyalty ladder. According

to the M score it indicates that participants have experienced medium level of personalisation

at their preferred hotels.

This scale was also examined with other scales by the T-test and ANOVA to identify any

differences that may occur between the study’s different groups and characteristics. Gender

and types of hotel have shown no significant differences but the marital status was significant

(p 0.008). In addition to this, females in this study perceived that they have been offered more

personalised services as their Mean score indicates M 5.08, which is more than male

participants (M 4.73). ANOVA tested participant’s different level of education, length of

relationship and number of visits and there were no significant differences found.

218

Hypothesis 3: A hotel’s efforts in value creation and personalization have a positive effect on

customer affective commitment.

The third direct relationship that this study proposed was the relationship between the third

loyalty transitions representing a hotel’s efforts in the personalisation of their service and the

third loyalty stage representing the customer’s affective commitment toward the hotel. This

relationship was tested after the development of reliable and validated scales as explained

earlier. Regression analysis was used to test this relationship and confirmed that a hotel’s

efforts in personalisation and value creation have a positive and significant effect on a

customer’s affective commitment (B = 0.638, R2 = 0. 405, T = 13.05, F = 170.54, P = .000).

Therefore, the research’s third direct hypothesis is confirmed and accepted. In the literature,

personalisation has been shown to have significant effects on client perceptions of overall

service quality and patronage behaviour, particularly in exchange conditions, which involve

personal encounters (Mittal and Lassar, 1996).

This hypothesis, therefore, confirms previous research that suggests that a hotel can use a

number of techniques through personalisation and value creation largely through the

interaction between service staff and customers to engender a strong feeling of affective

commitment to the hotel and to maintain a long term relationship.

The Belonging and Customer Citizenship Behaviour Stage and its antecedents

Recognition and Appreciation

The fourth and optimal stage confirmed in this study model was the customer belonging and

customer citizenship behaviour stage. The final scale consisted of three items grouped from

one existing scale - the Customer Citizenship Behaviour scale developed by Gtoth (2005) and

Yi and Gong (2013) and also evaluated in Laee et al.’s (2016) study. These three items

represent customer willingness to give feedback by filling out surveys, assisting other

customers and educating other hotel guests if needed. This scale aligns with the definition of

219

CCB in the literature provided by Groth (2005) as “voluntary and discretionary behaviours

that are not required for the successful production and delivery of the service but that in the

aggregate, help the service organisation overall” (p. 11).

This scale had an eigenvalue of 1.01 and explained 3.5% of the variance. These three items

loaded strongly and positively on this factor ranging between 0.41 and 0.71. This scale was

also subjected to scale reliability with a Cronbach’s Alpha of 0.797, which is considered to be

a very acceptable score by George and Millery (2003). The item-total correlations ranged

between 0.574 and 0.693, which surpassed the minimum recommended score of 0.50 by

Robinson (1991), and the inter-item correlation also beat the minimum recommended value

of 0.30 from Robinson (1991). This scale has shown strong reliability and was used in the

rest of this study scales for further analysis.

This scale was measured on a 7- point scale where 1 represents strongly disagree and 7

strongly agree. The mean score for this scale was 4.09, which was the lowest score among all

loyalty stages in the study and the standard deviation scored the highest among other scales

(1.66). This was exactly as expected since it represents an intense, positive and close

relationship existing between the customer and the hotel, that is the highest level of loyalty

and difficult to achieve. It shows that few of the participants saw themselves at this enhanced

stage of loyalty.

As with previous factors, this scale was subjected to a T-test and ANOVA to show any

statistically significant differences that may have occurred between the different participants’

profiles and characteristics. Participant’s gender, marital status and types of preferred hotel

showed no statistically significant differences. Female participants did show a belonging

score of 4.38 compared to the male participants of only 4.03. Married participants showed a

mean score of 4.18 compared to single participants with only 3.76. These results are

220

indicative rather than significant. In addition, ANOVA was used to examine participants’

education level, length of relationship and number of visits and there were significant

differences between participants’ different length of relationship (p 0.010) and the number of

visits (p 0.026).

The fourth transition confirmed in this study was the customer recognition and appreciation

practices that are received by the customer from their hotel service provider. The final scale

of this transition consisted of eight items from four different scales in the literature - three

items from the Provider Sociality Scale (Chas et al. 2000), two items from Scanlan and

McPhail’s (2000) familiarisation items, one item from King (1995) presented in Ariffin and

Maghzi (2012), and one item from the lodging quality index developed by Getty and Getty

(2003). These items represent personal relationships, special rewards and unexpected gifts,

positive affection building, friendly treatment, remembrance of customer preferences and

offering to meet particular needs This scale represents some of the conceptual meaning of

social bonding from Scanlan and McPhail (2000) - “Social familiarization and customer

knowledge that is generated over a series of face-to-face service encounters that foster mutual

friendship and feelings of affection between the customer and the service provider and,

ultimately, the organization” (p 498). Furthermore, it has covered some of the meaning of

Pacanowsky and O'Donnell-Trujillo’s (1983) four categories of socialities: courtesies,

pleasantries, sociability, and privacies.

This scale had an eigenvalue of 2.97 and explained 8.49% of the variance and its items

loaded strongly ranging between 0.48 and 0.70. This scale is formed from items from

different scales but it has shown strong internal reliability. The scale’s Cronbach Alpha was

0.867, which is considered to be a good result by George and Millery (2003). Additionally,

the scale item-total correlation showed robust values exceeding the minimum value of 0.50 as

well as inter-item correlations, also meeting the recommended values from Robinson (1991).

221

These results reflect the reliability of the scale and for these reasons the scale was used in this

study as a measurement for the recognition and appreciation transition.

This scale was measured on a 7- point scale where 1 represents strongly disagree and 7

strongly agree. This scale achieved the lowest score, in terms of the mean of 3.71, among all

the loyalty transitions. This is expected since it is proposed in this study as the highest level

of service that a customer can get. This score suggests that few customers value their service

provider at this level and they do not believe they are receiving this level of service.

This scale was also subjected to tests (T-test and ANOVA) to identify and highlight any

differences between participants’ profiling and characteristics. The T-test showed no

statistically significant differences between participant’s different gender, marital status and

types of preferred hotel. An ANOVA test was also employed to examine the differences

among participants in terms of their different level of education, length of relationship and

number of visits.

Hypothesis 4: A hotel’s efforts in the recognition and appreciation transition have a positive

effect on the customer belonging stage

As the model proposed, this study found a positive and significant relationship between the

fourth transition of loyalty - recognition and appreciation - and the fourth stage of loyalty -

belonging and customer citizenship behaviour. The relationship was tested after the

development of reliable and validated scales. The study employed regression analysis to test

this hypothesis and highlighted the relationship and confirmed that a hotel’s efforts in

recognition and appreciation have a positive effect on the development of feelings of

customer belonging (B = 0.585, R2 = 0.339, T = 11.34, F = 128.72, P = 0.000). Therefore, the

fourth research hypothesis is confirmed and accepted. In the literature, a customer can show

customer citizenship behaviour when a “customer holds positive perceptions regarding

222

his/her service providers past performance, the close relationship between customers and

their service providers can increase customers’ empathy toward their service providers,

invoking altruistic or other-serving motivations that result in CCBs” (Bove et al. 2009 .in

Laee and Sherry, 2016 p 541).

This hypothesis, therefore, confirms previous research that suggests that a hotel can promote

a sense of belonging and inculcate customer citizenship behaviour in its customers through

the use of behaviours intended to reward customers and show appreciation of their

relationship with the hotel.

7.3.2 Exploring the development of the customer loyalty stages

The following hypotheses developed to test the proposed idea that suggests customer loyalty

can be developed, and the customer can move up the ladder of loyalty. After examining the

direct effects of the loyalty transitions on customer loyalty stages, the researcher then moved

to explore how customers can develop and strengthen their loyalty and studied the effects of

each loyalty stage and transition on the upper stage. This stage revealed that the effect of

loyalty transitions on their stages was shown to be more significant when working through

previous loyalty stage. Furthermore, the loyalty stages from the bottom up have a positive

effect on one another. The following sections will elaborate more on this

Hypothesis 5: Customer Behavioural Loyalty stage mediates the relationship between

customer engagement and customer emotional attachment stage.

This research model proposes that customer loyalty can be developed from one stage to

another with the support of business efforts and practices such as customer engagement,

personalization and recognition in the transitions but also relying on the effects of the

previous loyalty stage on the subsequent stage. The model suggests that once the hotel

service providers have secured and acquired a behaviourally loyal customer they have a

223

greater chance of gaining an emotionally attached customer and the customer engagement

actions have a greater effect on the emotional attachment stage. The second hypothesis

confirmed the direct, positive and significant relationship between customer engagement and

customer emotional attachment, while this hypothesis is concerned with the development of

customer loyalty.

To test this hypothesis, this study employed the Baron and Kenny (1986) four steps

regression method as discussed in the findings chapter.

The results of the multiple regression showed that behavioural loyalty partially mediates the

relationship between customer engagement and its dependent variable - emotional

attachment, reducing the beta value of customer engagement from β 0.577 to β 0.194, but

increasing the combined explanatory effect with the adjusted R2 moving from R2 0.330 up to

R2 0.500, which confirms the positive and greater effect of customer engagement working on

already behaviourally loyalty customers.

This result matches the discussion made by Ganesh et al. (2000), Bijmolt et al. (2010), and

Kumar et al. (2010a, 2010b). Kandampully et al. (2015) explained their views as:

“Active loyalty refers to customers’ engagement with the firm and willingness to serve

as brand ambassadors who endorse the firm’s products and services with positive

WOM... Engagement implies the customer’s active interaction and participation with

the firm, which produces a more meaningful, deeper relationship” (p. 398).

This suggests that a behaviourally loyal customer who is actively engaged by the hotel and its

staff will eventually develop a significant and deeper relationship. As this hypotheses stated,

which has been confirmed and accepted, customer engagement has a greater effect on

customer emotional attachment stage when working through behavioural loyalty.

224

Hypothesis 6: Customer Emotional Attachment stage mediates the relationship between

personalization and value creation and Customer Affective Commitment stage.

The second development hypothesis in this research model is that hotel service providers that

already have emotionally attached customers have a greater opportunity of developing their

customer loyalty to the third loyalty stage - affective commitment.

Again using the Baron and Kenny (1986) approach, the results showed that emotional

attachment has a mediating role in the relationship between personalisation and value

creation and the affective commitment stage of loyalty, reducing the beta value from β 0.642

to β 0.128. However, the combined effect of personalisation being applied to already

emotionally attached customers increased the adjusted R2 from R2 0.41 to R2 0.595.

These results partially match the outcome of Mattila’s (2001) study on emotional bonding

and customer loyalty in a restaurant. According to that study,

“Committed customers place a high value on a restaurant’s social benefits, such as

friendship and familiarity, in addition to good food and a fun atmosphere”(p 78).

Furthermore, it also confirms that restaurant operators can strengthen the social bonding by

concentrating on pleasant interaction and personal connection. This suggests that

personalisation and emotional bonding can have a great effect on affective commitment.

225

Hypothesis 7: Customer Affective Commitment stage mediates the relationship between

customer recognition and appreciation Transition and Customer Belonging stage.

The relationship between the customer affective commitment stage, belonging stage and

customer recognition and appreciation, is considered as the last link in the chain of the model.

It suggests that hotel service providers using the scales this study has offered could recognise

they are already affectively committed customers and can work to provide them with

recognition and appreciation to develop their loyalty level to the ultimate and strongest

loyalty stage - the customer belonging stage.

Once more using the Baron and Kenny (1986) approach, the results showed that affective

commitment has a mediating role in the relationship between recognition and appreciation

and the belonging and CCB stage of loyalty, reducing the beta value from β 0.60 to β 0.310.

However, the combined effect of recognition and appreciation being applied to already

affectively committed customers increased the adjusted R2 from R2 0.357 to R2 0.508.

This result has resonance in the literature. Liu and Mattila (2015) stated that, customers with

high levels of affective commitment have a strong intention to support that firm to improve

its performance, while Morgan and Hunt (1994) have suggested that “commitment is a key

mediating factor of a successful business relationship” (As cited in Hur et al. 2018, p 1261)

Loyalty Development Conclusion

The last three hypotheses presented the main idea that this study model was formed and

developed around what is customer loyalty development. These processes confirms the idea

from the model of a hierarchy of loyalty stages, which each require different inputs to

achieve, but that each stage depends to a large extent on having reached the previous stage

for those inputs to be effective. This is important at two levels. One, that behavioural loyalty

is confirmed to be the basic stage of customer loyalty and loyalty can be developed and move

226

upward via the effect and influence of loyalty transitions and stages. Second, in order for

businesses to have effective loyalty transitions they must first identify the level and stage of

loyalty that their customer is at so that they can tailor their services and efforts to match the

need and want of their customer.

7.4 Loyalty Groups (Cluster Analysis)

This study employed a cluster analysis approach to get a better understanding of the study

participants and to enable the researcher to form a clear picture of the different types of

customer grouping in terms of their level and strength of loyalty. The study used K-means

cluster analysis and the process revealed some interesting outcomes.

There were three distinct groups of participants revealed from this analysis. The first group of

participants could be considered as truly loyal customers with positive and strong mean

scores across all four loyalty stage (Behavioural Loyalty M 6.48. Emotional Attachment M

5.77. Affective Commitment M 6.07. Belonging CCB M 5.64). The second group,

categorised according to their mean scores, were customers who were on their way to

becoming loyal but with their current strongest stage as the behavioural loyalty stage (B.L

5.04, E.A 3.69, A.C 4.42, and B.CCB 3.75). The third group of participants were found to be

not yet loyal and scored low on all loyalty stages (B.L 3.6 E.A 2.46, A.C 2.58, and B.CCB

2.08).

The most loyal group identified at this stage consisted of 90 participants, the second less loyal

group consisted of 109 participants and the last group, the least loyal participants, consisted

of 51. Cross Tabulation and ANOVAs were also used to try to identify any differences that

existed between clusters such as in terms of gender, marital status, types of hotel, education

level and length of relationships. There were no significant differences revealed by this

analysis, however, Table 6.49 in the analysis finding chapter presented some very useful

227

information regarding the number of participants assigned to each cluster and their

characteristics and profiling.

The cluster analysis outcome should assure hotel service providers that they would be able to

allocate their customers to different groups by adopting the scales and measures from this

study. This process will be beneficial for them so that they can tailor and shape their

customer experience according to the needs and gaps recognised. This would also help them

in directing their efforts to the right places as well as providing the right services to the right

group. It will also enable their marketing and customer relations department to effectively

target their guests with the right and most suitable communication and promotions.

7.5 Research Contribution Section

This section will review the research key findings and discuss how the research question,

aims and objectives have been achieved. It will also highlight the study’s main theoretical

and methodological contributions and will present the most significant practical and

228

managerial impacts that the study generated. However, as with every other study, this study

has some limitations which will be explained in this chapter alongside researcher

recommendations for future research.

7.5.1 Achieving the research objectives

As stated in the introductory chapter, the purpose and intentions of this research was to

explore the following questions:

How does loyalty develop? Can we identify the potential stages and transitions that support

the development of loyalty in the hotel industry highlighting business inputs and the

characteristics of each stage of loyalty?

The research questions and objectives have been answered and achieved successfully. This

research has explored the meaning and complexity of customer loyalty and has identified

different types and stages of loyalty along with multiple loyalty transitions, which represent

business practices and services that play a role in encouraging and developing customer

loyalty. Furthermore, it has confirmed and validated the study conceptual model and

recognised all stages and transitions characteristics and indicators, and has identified links

between the stages and transitions. Finally, it has shaped and built the holistic picture of

customer loyalty and has tested and confirmed the idea of customer loyalty development.

To examine and study the research questions, five objectives had been formed:

To explore the meaning and complexity of loyalty

To build a conceptual framework of customer loyalty stages and transitions

To identify indicators and characteristics of each stage and transition.

To highlight the inputs necessary to drive loyalty at each stage

To develop and test a coherent structure for the development of loyalty and build

reliable measurement scale for each stage and transition and test the links and

relationships existed.

229

7.5.2 Review of the study’s findings

Following the research question and objectives, this research has gone beyond the current

understanding of customer loyalty and has extended the meaning of the concept and

enlightened some of the grey areas by taking the current disparate approaches and combining

these into a holistic theoretical model. The study has aimed for a holistic picture and

understanding of customer loyalty and has taken all aspects of this topic into consideration

and under investigations.

To answer the research questions, the researcher has reviewed the literature around loyalty

and has identified different types of possible loyalty stages and then has highlighted loyalty

motivations and services employed to encourage customer loyalty. Then, the researcher has

recognized possible links between loyalty stages and loyalty transitions and the possibility of

the development and movement of customer loyalty. In so doing, the research investigated

the differences that exist between loyal customers at different stages of loyalty in terms of

their actions, commitment, attachment and sense of belonging to their preferred business. In

order to be able to examine these different types of loyalty, the research took into

consideration the inputs that businesses have to offer to their customers and their effects on

the level and strength of customer loyalty. This research identified four customer loyalty

stages and four loyalty transitions as well as confirming the original conceptual model that

suggested the idea of the development of customer loyalty as was explained in more detail in

the previous chapter.

This study has revealed a series of fascinating and significant findings and has stressed the

importance of human interactions and relationships in the development of customer loyalty,

as well as confirming and validating the four loyalty stages scales and four transitions scales.

230

After the confirmation and validation of the research eight scales, which represents the

loyalty stages and transitions, the researcher examined the direct links and relationships

existed between stages and transitions and the results are as follows,

Table 7.82 Links between Stages and Transitions

1. The Attract and Acquire Transition (AAT) inputs were found to be a significant predictor of the Behavioural Loyalty Stage (BLS) in the hotel industry. This transition has a positive effect on customer behavioural loyalty (B = 0.77, R2 = 0.59, P = 0.000, F = 360.2, T = 18.97).

2. The Customer Engagement Transition (CET) was revealed to be a significant predictor of the Customer Emotional Attachment Stage (CEAS) for their preferred hotel. The Customer Engagement Transition has been confirmed to have a positive effect on the Customer Emotional Attachment Stage (B = .521, R2 =0.269, P = 0.000, F = 92.53, T = 9.6).

3. The Personalisation and Value Creation Transition (PVCT) was confirmed to be a significant predictor of the Customer Affective Commitment Stage (CACS) of loyalty. It has shown a positive effect on the customer affective commitment stage (B = .638, R2. =0. 405, P = 0.000, F = 170.54, T = 13.05).

4. The Recognition and Appreciation Transition (RAT) was found to be a significant predictor of customer belonging and customer citizenship behaviour. This transition was confirmed to have a positive effect on the Customer Belonging Stage (CBS) of loyalty (B = 0.585, R2. = 0. 339, P = 0.000, F = 128.72, T = 11.34)

After checking the direct relationships between the loyalty transitions, which represent the

business inputs and effort made by a business to gain and strengthen customer loyalty, and

the various stages of customer loyalty using simple regression, the research then examined

the idea of the development of customer loyalty and the movement from one stage to the

other.

231

The research findings supported this idea and revealed a series of interesting findings. At this

stage of the analysis, the researcher adopted the Baron and Kenny (1986) method to test the

study’s mediation hypotheses.

▪ Customer Behavioural Loyalty stage mediates the relationship between customer

engagement transition and customer emotional attachment stage. Therefore, for

hotels to obtain an emotionally attached customer, this research confirmed that the

hotel should first gain a behaviourally loyal customer. Behavioural loyalty plays a

significant role and it is shown to partly mediate the relationship between

customer engagement and emotional attachment. The adjusted R2 has a greater

value (R2. 0. 500) when adding both customer engagement and behavioural

loyalty, which means that customer engagement works better through behavioural

loyalty.

▪ Customer Emotional Attachment stage mediates the relationship between

personalisation and value creation transition and Customer Affective Commitment

stage. Thus, to have an affectively committed customer in the hotel industry it

appears, as confirmed in this study, that the hotel needs first to develop an

emotionally attached customer. This study shows that the emotional attachment

stage plays an important part in the process of developing an affectively

committed customer. When adding emotional attachment to the personalisation

and value creation transition, the overall adjusted R2 has shown a greater value of

R2 0.595 and the personalisation and value creation beta value went down to

β.128). These results confirm that emotional attachment partially mediates the

relationship between the customer personalisation transition and the affective

commitment stage and also confirmed that personalisation works better with

customers who are already emotionally attached.

▪ Customer Affective Commitment stage mediates the relationship between

customer recognition and appreciation transition and Customer Belonging stage.

Therefore, this transition effect will be stronger when working with a customer

who is already an affectively committed customer of the organisation. This study

presents that when adding both the recognition and appreciation transition and the

affective commitment stage to the regression the adjusted R2 has obtained a

greater value of 0.508 and the recognition and appreciation beta value went down

232

to 0.310. These results confirmed that affective commitment partially mediates the

relationship between the recognition transition and the belonging stage and so

confirms recognition and appreciation works better on customers who are already

at the affective commitment stage.

Figure 7.3 presents a diagram of the research model that has been tested and confirmed,

Figure 7-22: Validated Research Model

233

7.6 Contributions of the research

The concept of customer loyalty has been heavily studied and investigated in different

disciplines and industries. Most of the understanding of customer loyalty has been formed

around behavioural and attitudinal loyalty. However, this study has followed a diverse and

innovative approach and has looked at this concept from an in-depth and broader point of

view, and has taken this concept into a much deeper, more holistic and more sophisticated

approach. This research has attempted to redefine the widely known concept of loyalty and

helped develop an exciting and practical model that will be beneficial to both academic and

234

industry practice. It has explored a range of different and important areas and aspects of

customer loyalty and has addressed them.

7.6.1 Theoretical and Methodological Contributions

This study found five significant theoretical and methodological contributions. These are,

first, it identified four different stages of loyalty, with the behavioural loyalty stage being the

first but not necessarily the most important, second, it recognised that there are practices and

inputs that hotels can offer to encourage loyalty and that there are different inputs for each of

the four stages of loyalty named as loyalty transitions, third, it identified the links and

relationships existed between each loyalty stages and its loyalty transition predictor. Fourth,

this study has used different types of analysis methods such as q-sort and cluster analysis

alongside other methods such as regression analysis, and the fifth contribution is the

confirmation and acceptance of the idea of customer loyalty as a process of development with

movement from one stage to another.

This research has developed the idea of the four loyalty stages and four transitions and has

gathered, developed and validated scales and measures for each of these distinct stages. Eight

scales were identified, developed, measured and validated in this study. These scales

represent the study perspective and overall picture of customer loyalty. The development of

the study scales went through multiple stages including a comprehensive study of the

literature followed by an exploratory preliminary study, Q-sort method, pilot study and

finally exploratory factor analysis. Exploratory factor analysis provided the study with eight

constructs which then were taken to reliability tests. This process gave the research eight

purified, reliable and validated scales and measures for the primary model. These validated

scales are considered to be theoretical, methodological and practical contributions and can be

used for all to have a better understanding of customer loyalty. The final scales were

developed from many different previous independently used scales drawn from the literature

235

but all of the new scales have shown strong reliability and validity with their scores in terms

of their Cronbach’s alpha, inter-item correlation, and item-total correlation, all of which were

strong.

The third contribution is the identifying of the links and relationships existed between each

loyalty stages and its loyalty transition predictor. The testing of hypotheses started from

examining the effects loyalty transitions have on loyalty stages and found that the attract and

acquire transition have a positive effect on customer behavioural loyalty, customer

engagement transition has a positive effect on customer emotional attachment as well as

personalisation transition on customer affective commitment and recognition and

appreciation transition positive effect on the customer belonging loyalty stage.

The fourth contribution is that this study employed a range of different but commonly used

analysis approaches such as semi-structured interviews, exploratory factor analysis, scale

reliability, descriptive statistics and crosstabs, single and multiple regression analysis as well

as T- tests and ANOVA. However, this study has the advantage of using two more unusual

and interesting methods at different stages of the study. At the instrument development stage,

this study used the Q-sort method to help in scale development, which added more trust and

confidence at that stage of the research. At this stage, I extracted a whole set of items from a

complex literature and had grouped these under different headings but needed to be confident

that others would naturally group them in the same way. I employed 40 participants at two

stages, used different settings and techniques and finally came up with a purified and

validated instrument. These steps are discussed in more detail in the methodology chapter.

The second interesting analysis method was the use of Cluster analysis method. This method

assisted the study with valuable clarification and information regarding the different types of

customer loyalty groups that can be identified employing this study scales and measures. This

236

method has stressed and driven the attention and emphasis from grouping of the items into

scales to the grouping of the participants.

The fifth contribution of this study is the confirmation and acceptance of the idea of customer

loyalty as a process of development with movement from one stage to another. Previous

researchers such as Oliver (1997), and Christopher et al. (1993), have studied and discussed

types of loyalty and its development but in a different way. Oliver (1997), has provided the

four phase model, which are the cognitive, affective, conative and action phases, and

Christopher et al. (1993) presented the relationship marketing ladder of customer loyalty

starting from repeated customer to advocate customer. This research is unique and it has

provided distinctive outcomes that provide a holistic picture and a deep understanding of

customer loyalty from all possible different angles and point of views.

After the process of confirming and validating the scales and testing the direct effects of each

transition on its associated loyalty stage, the research examined a set of hypotheses that were

focused on the developmental idea of customer loyalty. It has confirmed that to reach the

second stage of loyalty and become an emotionally attached customer, the inputs of the

customer engagement transition will have a greater effect when working through the

behavioural loyalty stage, which is the first stage. The second developmental hypothesis

similarly confirmed that developing customer’s emotional attachment into affective

commitment will work better when the personalisation transition, which is the antecedent of

customer affective commitment, work better on customers who are already emotionally

attached. In addition, the development from the affective commitment stage to the belonging

stage will need more than just the customer recognition and appreciation transition, as this

will have a greater effect when working through customer affective commitment. The most

significant fact about this theoretical contribution of this current study is that it has looked at

loyalty holistically and took everything into consideration at the same time, rather than

237

previous work, which has tended to look at a single stage or a single transition or different

approaches. This research has looked at the big picture, investigated all perspective and

identified all needed pieces to create a sound, thoughtful and beneficial model.

7.6.2 Practical and Managerial Implications

In addition to the fascinating theoretical contributions described above, this research has also

provided some valuable contributions that are considered relevant and important for the

hospitality and tourism businesses in general and the hotel industry in particular. This

research has redefined the concept of customer loyalty and has gone beyond the current broad

understanding of customer loyalty in the industry. Additionally, it has driven attention to

what customers are looking for and what businesses should be focusing on in terms of

gaining, retaining and developing customer loyalty. Six main issues seem to emerge here.

First, this research has provided a holistic picture of the customer loyalty journey in the hotel

industry. The model will enable hotel managers and employees to have a better understanding

of their current customer. This model has mapped their customer journey from their first step

into their property until they become what could be described as stakeholders. This model

will give relationship marketing teams a set of clear tasks and duties that can be addressed

toward each segment of their current customers identified through the help of the study’s

comprehensive model. This will help them to make more effective, attractive and appealing

marketing and relationship strategies. Therefore, implementing the outcome of this study in

the workplace will have positive impacts on developing intimate and close relationships

between service receivers and providers, which will enhance the health, length and benefits

for both parties. Moreover, it gives the opportunity for service providers to pinpoint the level

and strength of their customer loyalty and direct their needed and most suited practices and

efforts, which save them time and works. Hotel service providers can use this study’s main

238

instrument as a tool to identify their customer states of loyalty and to rate their services being

provided to them.

Second, this study has developed and shaped reliable and valuable measurements and scales

for customer loyalty stages and transitions. These scales will support human resource

departments, relationship marketing strategists and planners by enabling them to please,

satisfy and recognise their customer. Transition scales represents businesses practices and

efforts that should be done for the businesses to obtain, retain and develop customer loyalty.

Transition scales are categorised into four scales, attract and acquire, customer engagement,

personalisation and customer recognition and appreciation. By understanding these four

scales, and their roles in capturing, improving and strengthening their customer loyalty, they

would be better when developing workshops for their employees and their employees would

enjoy the benefits of knowing in which level each customer that they are interacting with are,

and which practice will make them look more genuine and professional. Moreover, by

developing customer loyalty workshop through the understanding of these scales, a business

would save time and effort and would be able to tailor their marketing strategies in

accordance with the model. On the other hand, this study has provided business with a

valuable categorisation of customer loyalty stages. There are four loyalty stages, which,

starting from behavioural loyalty, include emotional attachment, affective commitment and

belonging. This study has made it possible for businesses to identify in which stage their

customer is at, which would make their marketing and relations effort more proactive and

more affective. These scales basically give the hotel the opportunity to cluster their customer

according to their loyalty stage, and work toward developing their loyalty by implementing

practices created in the transition scales. The hotel will be able to develop its customer

loyalty from one stage to another and will be able to identify their weaknesses and strength in

term of their efforts in the loyalty transitions.

239

Third, this study has stressed the importance and effects of human interaction and

relationship on customer loyalty development. In this study, the second (Emotional

attachment), third (Affective Commitment) and fourth (Belonging) loyalty stages are heavily

dependent on the aspects of human interaction, engagement, personalisation, recognition and

relationships. The hospitality industry in this era is facing so many challenges such as the

introduction of the robotic services and automation. This study is providing the industry with

a very important fact, which is concerned with what the customer is really looking for and

that is the personal relationship. These relationships play an important role in developing

their emotional attachment, commitment and sense of belonging to their preferred hotel,

which should be seriously considered.

Fourth, Hotel marketing and promotional strategies as this study found should be changed.

This study has found that physical wonders play an introductory level in the customer loyalty

journey where the relationship and customer experiences played significant roles in the

development of customer loyalty, which is the goal and objective each business would want

to achieve. Hotel marketing should add more elements to their marketing campaigns that

would show more of the human interaction, intimacy, relationships and should show more of

how they can provide memorable, customisable and a unique customer service and

experience.

Fifth, this study showed no significant differences existed among different types of customers

in terms of gender, marital status, education level etc. This means that hotel service providers

would not need to worry about how to approach or target different types of customer, but

instead they would enjoy the benefit of having one marketing and relationship strategy.

Sixth, a hotel management team can employee these scales and measures especially the

transitions scales to rate their level and the quality of their services provided to their guest.

240

They can ask their employees to engage in a focus group to discuss all these important

practices and services and identify the things that they are doing well and the practices that

they are not doing well. Identifying their weak spots can support them boost and improve

their guest experience and thus their loyalty.

7.6.3 Limitations and future research

Although this research has employed multiple investigative methods and acquired different

types of analytical approaches in exploring and examining the complexity of customer

loyalty, there are some issues that became obvious by the end of this journey, which can be

considered as limitations and opportunities for future research. These issues will be explained

as follows,

The main research instrument could have been seen as a bit long for the study participants to

complete, even though participants were able to answer fully all the questions within 10

minutes. Facts from the survey report indicated participants who completed the survey up to

question 6 were 411, people who completed up to the end of questions regarding loyalty

transitions were 323, and it dropped to 260 for participants who completed the second face

that concerned with loyalty stages. I believe, in this era of social media, people tend to lose

interest quickly. There are many short marketing surveys placed on social media that usually

take them less than one minute to complete, whereas surveys developed for academic

purposes tend to be longer and less entertaining. Despite the fact that participants were not

provided with any types of compensations or financial benefits, the researcher was still able

to find those customers who were interested in and genuine about taking the survey.

This study was directed to hotel users in the Kingdom of Saudi Arabia and 87% of the

participants were Saudi Citizens, which was as determined for the purposes of this current

study. The idea of hospitality and personal relationships is a key feature of the Saudi culture,

241

whereas other cultures may have different viewpoints and hospitality may not feature so

strongly. It would be interesting and revealing to explore the viewpoints of different cultures

and countries using the same instruments for a detailed comparison. Taking this research

conceptual model and testing it across cultures by conducting a comparative study which

would provide added value to the hospitality industry. It would be interesting to examine

consumer behaviours, attitudes and relationships in the hotel industry in different countries to

identify differences that may occur. In addition, applying this research instrument for the

development of customer loyalty in hotels on other areas and sectors of the hospitality and

tourism industry would be motivated to highlight, and identify similarity and differences that

exist.

This study focused on the consumer viewpoint regarding customer loyalty in the hotel

industry. It has investigated customers’ feelings and perceptions of the services that they have

been provided with and the outcomes that resulted from such practices and efforts. However,

it would also be interesting to study the service provider’s perspective on this matter and to

study what motivated them to provide their guest with the services identified in the loyalty

transitions and to see what they think of their customers’ reactions towards their hotels.

Affective commitment as proposed in this study represents the third loyalty stage whereas

emotional attachment represents the second stage of customer loyalty. However, this study

showed that participants on average rated their affective commitment (M 4.63) slightly higher

than their emotional attachment (M 4.18). This appears to be anomalous to the development

of the model and further investigation of these two constructs should be revealing.

Some hotels have adopted types of robot technologies and AI that may have an effect on their

customers’ experiences. This study has not directly included any of the technology trends that

are being introduced to the hotel industry. No direct questions were asked regarding the

242

presence of technologies such as robotic services and automation. It would be interesting to

see what these technologies can add to customer experiences and loyalty or indeed whether

they would have a detrimental effect.

The study main instrument needs more work in terms of purifications and validations. The

reasons are that, to do a confirmation factor analysis that will also lead to structural equation

modelling analysis, would need a more significant sample. There is a plan to take this study

instrument to the next level by testing theses scale in a bigger context and larger samples so

that this study instrument can have better reliability and soundness.

In conclusion, this research has recognised the importance of understanding the complexity

of loyalty and its current meaning and practices. This topic has been searched and studied in

different field and discipline, but none has explored the full picture of it, nor explained the

developmental process as this research is done. This research has identified four loyalty

stages behavioral loyalty, emotional attachment, affective commitment, and belonging along

with four loyalty transitions, attract and acquire, engagement, personalisation and recognition

and appreciation. Additionally, links between loyalty stages and transitions were recognised,

and the developmental process between stages was identified and confirmed. The outcome of

this research will enrich the understanding of this topic and will provide added value to

academia and the industry.

243

244

ReferencesAbeer A, Joanne .P, Pauline .S, (2018) "Institutional barriers to women’s employment in

Saudi Arabia", Equality, Diversity and Inclusion: An International Journal, 37 (7): 713-727,

https://doi.org/10.1108/EDI-08-2017-0159 .

Aggarwal, N., and Soch, H. (2013). Exploratory Factor Analysis of Customer Voluntary

Behaviour in Indian Retail Sector – An Empirical Study. IJAR Indian Journal of Applied

Research, 3(9): 34-36. doi:10.15373/2249555x/sept2013/109.

Agrawal, D. (1996). Effect of brand loyalty on advertising and trade promotions: A game

theoretic analysis with empirical evidence. Marketing Science, 15(1): 86–108

Ahearne, M., Jelinek, R., and Jones, E. (2007). Examining the effect of salesperson service

behavior in a competitive context. Journal of the Academy of Marketing Science, 35(4): 603-

616. doi:10.1007/s11747-006-0013-1

Aksoy, L., Keiningham, T. L., Buoye, A., Larivière, B., Williams, L., and Wilson, I. (2015).

Does loyalty span domains? Examining the relationship between consumer loyalty, other

loyalties and happiness. Journal of Business Research, 68(12): 2464-2476.

doi:10.1016/j.jbusres.2015.06.033

Al.Bostanji, G. M. (2013). The Impact of Service Quality on Customers Loyalty A Study on

five stars hotel’s customers in Riyadh, KSA. European Journal of Business and

Management, 5(31): 230-240.

Al-Agaga, A. M., and Nor, K. M. (2012). Factors That Influence E-Loyalty Of Internet

Banking Users. International Journal of Electronic Commerce Studies, 3(2): 297-304.

doi:10.7903/ijecs.1097

Alhojailan, M. I. (2012). Thematic analysis: a critical review of its process and evaluation.

West East Journal of Social Sciences, 1(1): 39-47.

Aliyu, A. A., Bello, M. U., Kasim, R., and Martin, D. (2014). Positivist and Non-Positivist

Paradigm in Social Science Research: Conflicting Paradigms or Perfect Partners? Journal of

Management and Sustainability, 4(3). doi:10.5539/jms.v4n3p79

Alrubaiee, L., and Al-Nazer, N. (2010). Investigate the Impact of Relationship Marketing

Orientation on Customer Loyalty: The Customers Perspective. International Journal of

Marketing Studies, 2(1). doi:10.5539/ijms.v2n1p155

245

Amine, A. (1998). Consumers' true brand loyalty: The central role of commitment. Journal

of Strategic Marketing, 6(4): 305-319. doi:10.1080/096525498346577

Ariffin, A. A., and Maghzi, A. (2012). A preliminary study on customer expectations of hotel

hospitality: Influences of personal and hotel factors. International Journal of Hospitality

Management, 31(1): 191-198. doi:10.1016/j.ijhm.2011.04.012 +

Auh, S., Bell, S. J., Mcleod, C. S., and Shih, E. (2007). Co-production and customer loyalty

in financial services. Journal of Retailing, 83(3): 359-370. doi:10.1016/j.jretai.2007.03.001

Babu, S. C., Gajanan, S. N., and Sanyal, P. (2014). Classifying Households On Food Security

and Poverty Dimensions—Application of K-Mean Cluster Analysis. Food Security, Poverty

and Nutrition Policy Analysis, 417-439. doi:10.1016/b978-0-12-405864-4.00013-2

Balaji, M. S. (2014). Managing customer citizenship behavior: A relationship perspective.

Journal of Strategic Marketing, 22(3): 222-239. doi:10.1080/0965254x.2013.876076

Ball, A. D., and Tasaki, L. H. (1992). The Role and Measurement of Attachment in

Consumer Behavior. Journal of Consumer Psychology, 1(2): 155-172.

doi:10.1207/s15327663jcp0102_04

Baloglu, S. (2002). Dimensions of Customer Loyalty: Separating Friends from Well Wishers.

The Cornell Hotel and Restaurant Administration Quarterly, 43(1): 47-59.

doi:10.1177/0010880402431005

Baum, T. (2006). Reflections on the Nature of Skills in the Experience Economy:

Challenging Traditional Skills Models in Hospitality. Journal of Hospitality and Tourism

Management, 13(2): 124-135.

Beavers A.S, Lounsbury J.W., Richards J.K., Huck S.W, Skolits G.J, and Shelley L. Esquivel

S.L., (2013) Practical Considerations for Using Exploratory Factor Analysis in Educational

Research. Practical Assessment, Research and Evaluation, 18(6), 1-13.

Belk, R.W. (1988), “Possessions and the extended self”, Journal of Consumer Research,

15(2): 139-68

Beltramini, R. F. (1992). Exploring the effectiveness of business gifts: A controlled field

experiment. Journal of the Academy of Marketing Science, 20(1): 87-91.

doi:10.1007/bf02723479

246

Berezan, O., Raab, C., Tanford, S., and Kim, Y. (2013). Evaluating Loyalty Constructs

Among Hotel Reward Program Members Using EWom. Journal of Hospitality & Tourism

Research, 39(2): 198-224. doi:10.1177/1096348012471384

Bergmann, Gustav and Spence, K. (1991). Operationism and Theory in Psychology.

Psychology Review. 48, 1-14.

Berry, L.L. (2000), “Cultivating service brand equity”, Academy of Marketing Science, 28(1):

128-137

Bettencourt, L. (1997). Customer voluntary performance: Customers as partners in service

delivery. Journal of Retailing, 73(3): 383-406. doi:10.1016/s0022-4359(97)90024-5

Bharwani, S., and Jauhari, V. (2013). An exploratory study of competencies required to co-

create memorable customer experiences in the hospitality industry. International Journal of

Contemporary Hospitality Management, 25(6): 823-843.

Bijmolt, T.H.A., Leeflang, P.S.H., Block, F., Eisenbeiss, M., Hardie, B.G.S., Lemmens, A.

and Saffert, P. (2010), Analytics for customer engagement, Journal of Service Research, 13

(3): 341-356.

Blau, P.M. (1968). Interaction: Social exchange, In D. E. Sills, International Encyclopaedia

of the Social Science. New York: Free Press, Macmillian.

Bodet, G. (2008). Customer satisfaction and loyalty in service: Two concepts, four

constructs, several relationships. Journal of Retailing and Consumer Services, 15(3): 156-

162. doi:10.1016/j.jretconser.2007.11.004

Boring, E. G., et al., (1964). Psychology: a Behavioral Reinterpretation. Philadelphia:

American Philosophical Society, 1964.

Bove, L. L., Pervan, S. J., Beatty, S. E., and Shiu, E. (2009). Service worker role in

encouraging customer organizational citizenship behaviors. Journal of Business Research,

62(7): 698-705. doi:10.1016/j.jbusres.2008.07.003

Bowen, J. T., and Chen, S. (2001). The relationship between customer loyalty and customer

satisfaction. International Journal of Contemporary Hospitality Management, 13(5): 213-

217. doi:10.1108/09596110110395893

Bowlby, J. (1979), The Making and Breaking of Affectional Bonds, London: Tavistock

247

Braun, V. and Clarke, V. (2006) Using thematic analysis in psychology. Qualitative

Research in Psychology, 3(2): 77-101

Brodbeck, M (1954), On the Philosophy of the Social Sciences. Philosophy of Science, 21(2):

140-156

Brodie, R. J., Ilic, A., Juric, B., and Hollebeek, L. (2013). Consumer engagement in a virtual

brand community: An exploratory analysis. Journal of Business Research, 66(1): 105-114.

doi:10.1016/j.jbusres.2011.07.029

Brotherton, (1999) "Towards a definitive view of the nature of hospitality and hospitality

management", International Journal of Contemporary Hospitality Management, 11{4): 165-

173

Brown, S. R. (1980). Political Subjectivity: Applications of Q Methodology in Political

Science, New Haven: Yale University Press

Buchanan, B. (1974), Building Organizational Commitment: The Socialization of Managers

in Work Organizations, Administrative Science Quarterly, 19: 533-546.

Burton, L.J and Mazerolle, S.M. (2011). Survey instrument validity part I: principles of

survey instrument development and validation in athletic training education research. Athletic

Training Education, 6(1): 27-35.

Cantallops, A. S., and Salvi, F. (2014). New consumer behavior: A review of research on

eWOM and hotels. International Journal of Hospitality Management, 36: 41-51

doi:10.1016/j.ijhm.2013.08.007

Carroll, B. A., and Ahuvia, A. C. (2006). Some antecedents and outcomes of brand love.

Marketing Letters Market Lett, 17(2): 79-89. doi:10.1007/s11002-006-4219-2

Lashley, C. (2015) Hospitality and hospitableness, Research in Hospitality Management, 5(1): 1-7

Central Intelligence Agency (2018), Central Intelligence Agency,

www.cia.gov/library/publications/resources/the-world-factbook/index.html. [Accessed 10

December 2018]

Cetin, G. (2014). Electronic word of mouth among hotel guests: demographic and

tripographic factors. The journal of knowledge economy & knowledge management, 9(2): 35-

41

248

Chas K , Wendy S. F and Curtis B (2000). Toward the development of a service provider

sociality scale and its relationship to customer satisfaction and loyalty, Communication

Research Reports, 17(3): 250-259

Chaudhuri, A. and M.B. Holbrook (2001). The Chain of Effects From Brand Trust and Brand

Effect to Brand Performance: The Role of Brand Loyalty, Journal of Marketing, 65: 81- 93.

Chaudhuri, A., and Holbrook, M. B. (2001). The Chain of Effects from Brand Trust and

Brand Affect to Brand Performance: The Role of Brand Loyalty. Journal of Marketing,

65(2): 81–93. http://doi.org/10.1509/jmkg.65.2.81.18255

Chen, K., Hsieh, K., Chang, F., and Chen, N. (2015). The Customer Citizenship Behaviors of

Food Blog Users. Sustainability, 7(9): 12502-12520. doi:10.3390/su70912502

Cheng, J., Luo, S., Yen, C., and Yang, Y. (2016). Brand attachment and customer citizenship

behaviors. The Service Industries Journal, 1-15. doi:10.1080/02642069.2016.1186658

Chinomona, R. (2013). The Influence of Brand Experience on Brand Satisfaction, Trust and

Attachment in South Africa. International Business & Economics Research Journal (IBER)

IBER, 12 (10): 1303-1316 doi:10.19030/iber.v12i10.8138

Chung‐Yu Wang, Li‐Wei Wu, (2012) "Customer loyalty and the role of relationship length",

Managing Service Quality: An International Journal, 22(1): 58-74,

https://doi.org/10.1108/09604521211198119

Clemes, M. D., Gan, C., and Ren, M. (2011). Synthesizing the effects of service quality,

value, and customer satisfaction on behavioral intentions in the motel industry: An empirical

analysis. Journal of Hospitality & Tourism Research, 35: 530-568

Cohen, J (1988). Statistical Power Analysis For the Behavioural Sciences, (2nd Ed.), London:

Routlege

Collins, D. (2003). Pretesting survey instruments: An overview of cognitive methods.

Quality of Life Research, 12: 229-238

Collins, H. (2010). Creative Research: The Theory and Practice of Research for the Creative

Industries. (2nd ed), London: Hillary Collins

Coogan, J., and Herrington, N. (2011). Q methodology: An overview. Research In Secondary

Teacher Education, 1(2): 24-28

249

Costello A.B and Osborne, J.W., (2005). Best Practices in Exploratory Factor Analysis: Four

Recommendations for Getting the Most From Your Analysis. Practical Assessment Research

& Evaluation, 10(7): 1-9

Creswell, J. W. (2007). Qualitative Inquiry & Research Design: Choosing among five

approaches (2nd ed.), Thousand Oaks: Sage Publications

Cronbach, L. (1951). Coefficient Alpha and the internal structure of tests. Psychometrika,

16(3): 297-334

Cross, R. M. (2004). Exploring attitudes: The case for Q methodology. Health Education

Research, 20(2): 206-213. doi:10.1093/her/cyg121

Crotty, M. (1998) The Foundations of Social Research. London: Sage Publications

Daniel W. Turner III. (2010). Qualitative Interview Design: A Practical Guide for Novice

Investigators. The Qualitative Report, 15: 754-760

Day, G. S. (1969). A two-dimensional concept of brand loyalty. Journal of Advertising

Research, 9: 29-35

DeCoster, J. (1998). Overview of Factor Analysis. http://www.stat-help.com/notes.html

[Accessed 18 December 2018]

Denzin and Y. S. Lincoln (Eds.). Handbook of qualitative Research. London: Sage

Publications

Di, E., Huang, C., Chen, I., and Yu, T. (2010). Organisational justice and customer

citizenship behaviour of retail industries. The Service Industries Journal, 30(11): 1919-1934.

doi:10.1080/02642060802627533

Diesing, P. (1966). Objectivism vs. Subjectivism in the Social Sciences. Philosophy of

Science, 33(1/2): 124-133. doi:10.1086/288081ford Univ. Press, 1962.

Dillman, D. A., Smyth, J. D., and Christian, L. M. (2009), Internet, Mail, and Mixed-Mode

Surveys: The tailored design method (3rd ed.), New Jersey: John Wiley and Sons

Dindia, K and Allen, M (1992). Sex differences in self-disclosure: a meta-analysis’.

Psychological Bulletin, 112: 106-124

250

Dlačić, J., and Žabkar, V. (2012). Relationship Commitment, Relational Equity and Company

Image in Customer Loyalty Development. Economic Research-Ekonomska Istraživanja,

25(2): 503-523. doi:10.1080/1331677x.2012.11517520

Doorn, J. V., Lemon, K. N., Mittal, V., Nass, S., Pick, D., Pirner, P., and Verhoef, P. C.

(2010). Customer Engagement Behavior: Theoretical Foundations and Research Directions.

Journal of Service Research, 13(3): 253-266. doi:10.1177/1094670510375599.

Deloitte (2019). Middle East Real Estate Predictions .KSA Hospitality Market. https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/realestate/dme_real-estate-predictions_dubai-2019.pdf [Retrieved 18 March 2019]

Ekinci, Y. and Riley, M. (2001). Validating quality dimensions, Annals of Tourism Research,

28(1): 202-223

Emily M, Hailin Q and Rasha A. E. (2014) Customer Loyalty With Fine Dining: The

Moderating Role of Gender, Journal of Hospitality Marketing & Management, 23(5): 513-

535 DOI: 10.1080/19368623.2013.835250

Evans, J. R., and Mathur, A. (2005). The value of online surveys. Internet Research, 15(2):

195-219. doi:10.1108/10662240510590360

Sthapit .E (2019) Antecedents of a memorable hotel experience: Finnish hotels perspective,

Current Issues in Tourism, 22(20): 2458-2461, DOI: 10.1080/13683500.2018.1518413

EMEA Commercial (2019). Saudi Arabia Hotel Market. Savills Research https://pdf.euro.savills.co.uk/uk/commercial---other/saudi-arabia-hotel-market-2019.pdf [Retrieved 18 March 2019]

Fabrigar, L. R., Wegener, D. T., MacCallum, R. C., and Strahan, E. J. (1999). Evaluating the

use of exploratory factor analysis in psychological research. Psychological Methods, 4(3):

272-299.

Fedorikhin, A., Park, C., and Thomson, M. (2008). Beyond fit and attitude: The effect of

emotional attachment on consumer responses to brand extensions. Journal of Consumer

Psychology, 18(4): 281-291. doi:10.1016/j.jcps.2008.09.006

Field, A.P. (2009). Discovering statistics using SPSS (3rd Ed).London: Sage Publications

Finch, W. H., and Bronk, K. C. (2011). Conducting Confirmatory Latent Class Analysis

Using Mplus. Structural Equation Modeling: A Multidisciplinary Journal, 18(1): 132-151.

doi:10.1080/10705511.2011.532732

251

Fink,A (2003), The Survey Handbook, Thousand Oaks, CA, Sage Publications.

Gazzoli, G., Hancer, M., and Kim, B. (2013). Explaining why employee‐customer orientation

influences customers' perceptions of the service encounter. Journal of Service Management,

24(4): 382-400.

Gefen, D; Straub, D; and Boudreau, M (2000). Structural Equation Modeling and Regression:

Guidelines for Research Practice. Communications of the Association for Information

Systems: 4, Article 7. Available at: http://aisel.aisnet.org/cais/vol4/iss1/7

George .U, Ioana .A Horodnic, Adriana Z (2015). “How reliable are measurement scales?

External factors with indirect influence on reliability estimators”. Procedia Economics and

Finance. 20: 679-686

George, D., and Mallery, P. (2003). SPSS for Windows step by step: A simple guide and

reference. 11.0 update. (4th Ed.). Boston: Allyn and Bacon.

Geyskens, I., Steenkamp, J. B. E. M., Scheer, L. K., and Kumar, N. (1996). The effects of

trust and interdependence on relationship commitment: A trans-Atlantic study. International

Journal of Research in Marketing, 13(4): 303–317.

Gill, J. and Johnson, P. (2010) Research Methods for Managers (4th edn). London: Sage

Publications

Gill, R. (2011). Using Storytelling to Maintain Employee Loyalty during Change.

International Journal of Business and Social Science. 2(15): 23–32

Gounaris, S. P. (2005). Trust and commitment influences on customer retention: Insights

from business-to-business services. Journal of Business Research, 58(2): 126-140

doi:10.1016/s0148-2963(03)00122-

Gray, D. E. (2017). Doing research in the real world. Los Angeles, CA: Sage Publications

Gremler, D. D., and Brown, S. W. (1999). The loyalty ripple effect. International Journal of

Service Industry Management, 10(3): 271-293. doi:10.1108/09564239910276872

Gremler, D.D. and Brown, S.W. (1996), Service loyalty: its nature, importance, and

implications, in Edvardsson, B. et al. (Eds), Advancing Service Quality: A Global

Perspective, International Service Quality Association, pp. 171-80.

252

Grisaffe, D. B., and Nguyen, H. P. (2011). Antecedents of emotional attachment to brands.

Journal of Business Research, 64(10): 1052-1059. doi:10.1016/j.jbusres.2010.11.002

Groth, M. (2005). Customers as good soldiers: examining citizenship behaviors in internet

service deliveries. Journal of Management, 31(1):7-27

Gruen, T.W., Osmonbekov, T. and Czaplewski, A. (2005). eWOM: The impact of customer-

to-customer online know-how exchange on customer value and loyalty. Journal of Business

Research, 59(4): 449-456

Guba, E. G., and Lincoln, Y. S. (1994). Competing paradigms in qualitative research. In N.

K.

Guest, G., and MacQueen, K. M. (2008). Handbook for team-based qualitative research.

Lanham, MD: Altamira.

Guest, G., Bunce, A., and Johnson, L. (2006). How many interviews are enough? An

experiment with data saturation and variability. Field Methods, 18(1): 59-82.

doi:10.1177/1525822X05279903

Hair Jr J.F., Black W.C., Babin B.J., and Anderson R.E., (2014). Multivariate Data Analysis

(Seventh Ed). Harlow: Pearson Education.

Hajjar S. (2018) Statistical analysis: internal-consistency reliability and Construct validity.

International Journal of Quantitative and Qualitative Research Methods. 6 (1): 27-38

Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and

profitability: An empirical study. International Journal of Service Industry Management,

7(4): 27-42. doi:10.1108/09564239610129931

Harrison-Walker, L. J. (2001). The Measurement of Word-of-Mouth Communication and an

Investigation of Service Quality and Customer Commitment as Potential Antecedents.

Journal of Service Research, 4(1): 60-75.

Hennig-Thurau, T., and Klee, A. (1997). The impact of customer satisfaction and relationship

quality on customer retention: A critical reassessment and model development. Psychology

and Marketing. 14(8): 737-764. doi:10.1002/(sici)1520-6793(199712)14:83.3.co;2-z

253

Hepple, J., Kipps, M. and Thomson, J. (1990). The concept of hospitality and an evaluation

of its applicability to the experience of hospital patients, International Journal of Hospitality

Management, 9(4): 305-17.

Higgins, J. (2015). The Radical Statistician, New York: The Higgins Group

Hinkin, T. R., Tracey, J. B., and Enz, C. A. (1997). Scale Construction: Developing Reliable

and Valid Measurement Instruments. Journal of Hospitality & Tourism Research, 21(1): 100-

120. doi:10.1177/109634809702100108

Hocutt, A.M. (1998). Relationship dissolution model: antecedents of relationship

commitment and the likelihood of dissolving a relationship. International Journal of Service

Industry Management, 9(2): 89-100

Homburg, C., Giering, A., 2001. Personal characteristics as moderators of the relationship

between customer satisfaction and loyalty—an empirical analysis. Psychology and

Marketing, 18(1): 43–66

Hooper, D. (2012), ‘Exploratory Factor Analysis’, in Chen, H. (Ed.), Approaches to

Quantitative Research – Theory and its Practical Application: A Guide to Dissertation

Students, Cork, Ireland: Oak Tree Press.

Hur, W., Kim, H., and Kim, H. K. (2018). Does customer engagement in corporate social

responsibility initiatives lead to customer citizenship behaviour? The mediating roles of

customer-company identification and affective commitment. Corporate Social Responsibility

and Environmental Management, 25(6): 1258-1269. doi:10.1002/csr.1636

Hyun, S. S., and Kim, I. (2012). Identifying Optimal Rapport-Building Behaviors In Inducing

Patrons’ Emotional Attachment In Luxury Restaurants. Journal of Hospitality & Tourism

Research, 38(2): 162-198. doi:10.1177/1096348012451458

Iglesias, O., Markovic, S., and Rialp, J. (2019). How does sensory brand experience influence

brand equity? Considering the roles of customer satisfaction, customer affective commitment,

and employee empathy. Journal of Business Research, 96: 343-354.

doi:10.1016/j.jbusres.2018.05.043

Iglesias, O., Singh, J. J., and Batista-Foguet, J. M. (2011). The role of brand experience and

affective commitment in determining brand loyalty.  Journal of Brand Management, 18(8):

570-582. doi:10.1057/bm.2010.58 Inc.

254

International Test Commission. (2017). The ITC guidelines for translating and adapting tests

(2nd ed.). https://www.intestcom.org/files/guideline_test_adaptation_2ed.pdf [Retrieved 14

December 2018]

Japutra, A., Ekinci, Y., and Simkin, L. (2014). Exploring brand attachment, its determinants

and outcomes. Journal of Strategic Marketing, 22(7): 616-630.

doi:10.1080/0965254x.2014.914062

Jarvis, L. P., and Mayo, E. J. (1986). Winning the market-share game. Cornell Hotel

Restaurant Administration Quarterly, 27(3): 72–79.

Jones, N. B., and Bowlby, J. (1970). Attachment and Loss. Vol. I. Attachment. Management,

5(3): 523. doi:10.2307/2798963

Jones, T. O., and Sasser Jr., W. E. (1995). Why satisfied customers defect. Harvard Business

Review, 73(6): 88–99

Jones, T., and Taylor, S. F. (2007). The conceptual domain of service loyalty: How many

dimensions? Journal of Services Marketing, 21(1): 36-51. doi:10.1108/08876040710726284

Kandampully, J. (1998). Service quality to service loyalty: A relationship which goes beyond

customer services. Total Quality Management, 9(6): 431-443. doi:10.1080/0954412988370

Kandampully, J., and Suhartanto, D. (2000). Customer loyalty in the hotel industry: The role

of customer satisfaction and image.  International Journal of Contemporary Hospitality

Management, 12(6): 346-351. doi:10.1108/09596110010342559

Kandampully, J., Zhang, T. and Bilgihan, A. (2015). Customer loyalty: A review and future

directions with a special focus on the hospitality industry. International Journal of

Contemporary Hospitality Management, 27(3): 379-414. doi:10.1108/ijchm-03-2014-0151

Kandampully, J., Zhang, T. C., and Jaakkola, E. (2018). Customer experience management in

hospitality. International Journal of Contemporary Hospitality Management, 30(1): 21–56.

doi: 10.1108/ijchm-10-2015-0549

Kantor, J. R. (1958). Interbehavioral Psychology. Bloomington, Ind.: Principia Press

Kattara, Hanan Saad, Dina Weheba, and Osman Ahmed El-Said (2015). "The Impact Of

Employee Behaviour On Customers' Service Quality Perceptions And Overall Satisfaction."

Tourism and Hospitality Research, 4(2): 309-323

255

Kilduff, M. and Mehra, A. (1997). Postmodernism and organizational research, The Academy

of Management Review, 22: 453–481

Kim, J., and Yu, E. A. (2016). The Holistic Brand Experience of Branded Mobile

Applications Affects Brand Loyalty. Social Behavior and Personality: An International

Journal of Social Behavior Personal, 44(1): 77-87. doi:10.2224/sbp.2016.44.1.77

Klaus Nielsen (2007) The Qualitative Research Interview and Issues of Knowledge, Nordic

Psychology, 59(3): 210-222, DOI: 10.1027/1901-2276.59.3.210

Klopotan, I., Vrhovec-Žohar, K., and Mahič, E. (2016). Impact of Income on Customers'

Loyalty: Are Customers with Higher Income more Loyal? Business Systems Research

Journal, 7(1): 81-88 doi:10.1515/bsrj-2016-0006

Kovjanic, G. (2014). Islamic tourism as a factor of the Middle East regional development.

Turizam, 18 (1), 33-43. doi:10.5937/turizam1401033k

Kumar, V., Aksoy, L., Donkers, B., Venkatesan, R., Wiesel, T. and Tillmanns, S. (2010a),

Undervalued or overvalued customers: capturing total customer engagement value, Journal

of Service Research, 13(3): 297-310

Kumar, V., Petersen, J.A. and Leone, R.P. (2010b), Driving profitability by encouraging

customer referrals: who, when, and how, Journal of Marketing, 74(5): 1-17

Kvale, S. (1996), Interviews: An Introduction to Qualitative Research Interviewing.

Thousand Oaks, CA. Sage Publications

Kvale, S. (2007). Doing interviews. Thousand Oaks, CA: Sage Publications

Laee Choi, Sherry Lotz, (2016) "Motivations leading to customer citizenship behaviour in

services: scale development and validation", Journal of Consumer Marketing, 33(7): 539-551

Lanze, S.T., Collins, L.M., Lemmon, D.R and Schafer. J.L (2007), PROC LCA: a SAS

procedure for latent class analysis, Structural Equation Modeling, A Multidisciplinary

Journal, 14(4): 671-694

Lemon, K. N., Rust, R. T., and Zeithaml, V. A. (2001). What drives customer equity.

Marketing Management, 10 (1), 20-25 [Retrieved 18 December 2018]

Leong. (2008). Positivist Paradigm. Encyclopaedia 2(2): 343-343

Leshan, L. (1990). The dilemma of psychology, London: Penguin Books

256

Levy, S., and Hino, H. (2016). Emotional brand attachment: A factor in customer-bank

relationships. International Journal of Bank Marketing, 34(2): 136-150. doi:10.1108/ijbm-06-

2015-0092

Lugosi, P. (2008). Hospitality spaces, hospitable moments: consumer encounters and affective experiences in commercial settings. Journal of Foodservice, 19(2): 139–149. doi: 10.1111/j.1745-4506.2008.00092.

Lieberman, Bernhardt (1962). Experimental Studies of Conflict in Some Two-person and

Three-person Games, in Criswell, J. ed., Mathematical Methods in Smallgroup Processes.

Stanford: Stanford University Press

Liu, J. S., and Tsaur, S. (2014). We are in the same boat: Tourist citizenship

behaviors. Tourism Management, 42: 88-100. doi:10.1016/j.tourman.2013.11.001

Liu, S. Q., and Mattila, A. S. (2015). “I want to help “versus “I am just mad”: How affective

commitment influences customer feedback decisions. Cornell Hospitality Quarterly, 56(2):

213–222.

Lockwood, A. and Jones, P. (1984). People and the Hotel and Catering Industry. London:

Holt, Rinehart and Winston

Lockwood, A and Pyun, K (2017). Developing a Scale Measuring Customers’ Hotel

Servicescape Perceptions in Upscale Hotels. International Journal of Contemporary

Hospitality Management, 1-19.

Loureiro, S.M.C., Kastenholz, E., 2011. Corporate reputation, satisfaction, delight, and

loyalty towards rural lodging units in Portugal. International Journal of Hotel Management,

30: 575–583

Mackenzie, N., and Knipe, S. (2006). Research dilemmas: Paradigms, methods and

methodology. Educational Research, 16(2): 193-205

Malär, L., Krohmer, H., Hoyer, W. D., and Nyffenegger, B. (2011). Emotional Brand

Attachment and Brand Personality: The Relative Importance of the Actual and the Ideal Self.

Journal of Marketing, 75 (4), 35-52. doi:10.1509/jmkg.75.4.35

Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003) "Customer loyalty and

customer loyalty programs", Journal of Consumer Marketing, 20(4): 294-316,

https://doi.org/10.1108/07363760310483676

257

Market Snapshot- Saudi Arabia Hospitality Market (2017). Colliers International Tourism.

Marshall, N. W. (2010). Commitment, Loyalty and Customer Lifetime Value: Investigating

The Relationships Among Key Determinants. Journal of Business & Economics Research

(JBER) 8(8): 67-84 doi:10.19030/jber.v8i8.753

Mascarenhas, O. A., Kesavan, R., and Bernacchi, M. (2006). Lasting customer loyalty: A

total customer experience approach. Journal of Consumer Marketing, 23(7): 397-405.

doi:10.1108/07363760610712939

Mattila, A. (2001). Emotional bonding and restaurant loyalty. The Cornell Hotel and

Restaurant Administration Quarterly, 42(6): 73-79. doi:10.1016/s0010-8804(01)81012-0

Mattila, A. (2006). How affective commitment boosts guest loyalty and promotes frequent

guest programs. The Cornell Hotel, Restaurant Administration Quarterly, 47(2): 174–181.

McKeown and Thomas, (1988). Q Methodology. Newbury Park CA: Sage Publications

Mcmullan, R. (2005). A multiple‐item scale for measuring customer loyalty development.

Journal of Services Marketing, 19(7): 470-481. doi:10.1108/08876040510625972

McNamara, C. (2009). General guidelines for conducting interviews.

https://managementhelp.org/businessresearch/interviews.htm [Retrieved 14 January 2019]

Michael Ottenbacher M., Vivienne Shaw V. and Andrew Lockwood A., (2006) An

Investigation of the Factors Affecting Innovation Performance in Chain and Independent

Hotels, Journal of Quality Assurance in Hospitality & Tourism, 6(3-4): 113-128, DOI:

10.1300/J162v06n03_07

Middle East Hotel Survey – Sailing Through Rough Seas (2016) Hvs.

Mittal, B. and Lassar, W.M. (1996). The role of personalization in service encounters.

Journal of Retailing, 72(1): 95-115

Mohsen .T and Reg D (2011). “Making sense of Cronbach's alpha”. International Journal of

Medical Education,.2: 53-55

Moorman, C., Zaltman, G. and Deshpande´, R. (1992). Relationships between providers and

users of market research: the dynamics of trust within and between organizations. Journal of

Marketing Research, 29(3): 314-328

258

Morakabati, Y. (2012). Tourism in the Middle East: Conflicts, Crises and Economic

Diversification, Some Critical Issues. International Journal of Tourism Research, 15(4): 375-

387. doi:10.1002/jtr.1882

Morgan, R. M., and Hunt, S. D. (1994). The commitment‐trust theory of relationship

marketing. Journal of Marketing, 58(3): 20–38

Mufeed, S. A., and Gulzar, R. (2014). Tourism in Saudi Arabia. Global Review of Research

in Tourism, Hospitality and Leisure Management, 1(3): 167-178.

Mustafa Tepeci, M., (1999) "Increasing brand loyalty in the hospitality industry",

International Journal of Contemporary Hospitality Management, 11(5): .223-230,

https://doi.org/10.1108/09596119910272757

Namey, E., Guest, G., Thairu, L. and Johnson, L. (2008). Data Reduction Techniques for

Large Qualitative Data Sets, in: Handbook for team-based qualitative research. Rowman

Altamira

Nammir, D. S., Maran, B. M., and Ali, A. M. (2012). Determine the Role of Customer

Engagement on Relationship Quality and Relationship Performance. European Journal of

Business and Management, 4(11): 27-36. doi:2222-2839

Oh, H., Fiore, A. and Jeoung, M. (2007), “Measuring experience economy concepts: tourism

applications”, Journal of Travel Research, 46: 119-132.

Oliver, R. L. (1997). Satisfaction: A behavioural perspective on the consumer. New York:

McGraw-Hill

Pacanowsky, M. E., and O'Donnell-Trujillo, N. (1983). Organizational communication as

cultural performance. Communication Monographs, 50 : 126-147.

Parasuraman, A., Zeithaml, V. A., and Berry, L. L. (1985). A conceptual model of service

quality and its implications for future research. Journal of Marketing, 49(4): 41-50.

Park, C. W, Deborah J. M, Joseph .P, Andreas B. E, and Dawn L (2010), Brand Attachment

and Brand Attitude Strength: Conceptual and Empirical Differentiation of Two Critical Brand

Equity Drivers, Journal of Marketing, 74(6): 1–17

259

Paul, M., Hennig-Thurau, T., and Groth, M. (2014). Tightening or loosening the “iron cage”?

The impact of formal and informal display controls on service customers. Journal of

Business Research, 1062-1073

Pavlos A. Vlachos, Aristeidis Theotokis, Katerina Pramatari, Adam Vrechopoulos, (2010)

Consumer‐retailer emotional attachment: Some antecedents and the moderating role of

attachment anxiety. European Journal of Marketing, 44(9/10): 1478-1499,

https://doi.org/10.1108/03090561011062934

Pizam A. and Shani A., (2009). The Nature of the Hospitality Industry: Present and Future

Managers' Perspectives, Anatolia, 20(1): 134-150, DOI: 10.1080/13032917.2009.10518900

Prahalad, C., and Ramaswamy, V. (2004). Co‐creating unique value with customers. Strategy

& Leadership, 32(3): 4-9 doi: 10.1108/10878570410699249

PWC (2014). Middle East cities hotel forecast for 2014 and 2015. Abu Dhabi, Doha, Dubai,

Jeddah, Muscat, Riyadh. Gateway for Growth.

https://www.pwc.com/m1/en/publications/middle_east_hotels_report.pdf [Retrieved 14 January

2019]

Ramli, Abdul Haeba and Herman Sjahruddin (2015). Building Patient Loyalty in Healthcare

Service, International Review of Management and Business Research, 4(2):

Rayer, S. (1996), Customer Loyalty Schemes: Effective Implementation and Management,

London: Financial Times Retail and Consumer Publishing

Reicheld, F.F. and Sasser, W.E. Jr (1990). Zero defections comes to services. Harvard

Business Review, September-October: 105-111

Reichheld, F. F. (1996). The loyalty effect: The hidden force behind growth, profits, and

lasting value. Boston, MA: Harvard Business School Press.

Reichheld, F.F. (1996). The Loyalty Effect, Harvard Business School Press, Boston,

MA.Riadh Ladhari, (2009). Service quality, emotional satisfaction, and behavioural

intentions: A study in the hotel industry. Managing Service Quality: An International

Journal, 19(3): 308-331 https:// doi.org/10.1108/09604520910955320

Robert .G et al, (2009) Survey Methodology, (2nd ed), John Whiley and Sons

Roberts, P. et al. (2006) Reliability and validity in research. Nursing Standard. 20, 44, 41-45.

260

Robinson, O. C. (2013). Sampling in Interview-Based Qualitative Research: A Theoretical

and Practical Guide. Qualitative Research in Psychology, 11(1): 25-41.

doi:10.1080/14780887.2013.801543

Rosenthal, V. (2018). Saudi Arabia's hotel pipeline is 76 percent of country's existing stock.

Hotel Management. https://www.hotelmanagement.net/development/marriott-set-to-more-than-

double-its-saudi-arabian-hotel-portfolio [Retrieved 18 December 2019]

Rueckert, R.W., Walker, O.C., and Roering, K.J. (1985). The organization of marketing

activities: A contingency theory of structure and performance. Journal of Marketing 49 (1),

13-25.

Sandy Q. Qu, J.D (2011). "The qualitative research interview", Qualitative Research in

Accounting & Management, 8(3): 238-264, https://doi.org/10.1108/11766091111162070#

Saudi Arabia Tourism Opinion Piece (2011). Colliers International Tourism.

KMPG (2017) Saudi Arabia’s Vision 2030: The Kingdom’s plan for life after oil,

https://home.kpmg/content/dam/kpmg/uk/pdf/2017/03/saudi-vision-2030-life-after-oil-kpmg-

corporate-intelligence.pdf [Retrieved 18 March 2019]

Saudi hospitality sector seen to grow 13.5% per annum to 2022. (2018). Saudi Gazette.

http://saudigazette.com.sa/article/528044/BUSINESS/Saudi-hospitality-sector-seen-to-grow-

135-per-annum-to-2022 [Retrieved 18 March 2019]

Saunders, M. N., Lewis, P., and Thornhill, A. (2016). Research methods for business

students. Harlow: Pearson Education.

Saunders, M., Lewis, P., and Thornhill, A. (2009). Research methods for business students.

Harlow: Financial Times Prentice Hall.

Scanlan, L., and Mcphail, J. (2000). Forming Service Relationships with Hotel Business

Travelers: The Critical Attributes to Improve Retention. Journal of Hospitality & Tourism

Research, 24(4): 491-513. doi:10.1177/109634800002400405

Sedgwick .P (2012). Pearson’s correlation coefficient. Centre for Medical and Healthcare

Education, St George’s, University of London, Tooting, London, UK BMJ 2012;345:e4483

Shammout, A. B., Zeidan, S., and Polonsky, M. J. (2006). Exploring the Links between

Relational Bonds and Customer Loyalty: The Case of loyal Arabic Guests at Five-Star hotels.

261

in ANZMAC 2006: Advancing theory, maintaining relevance, proceedings, Queensland

University of Technology, School of Advertising, Marketing and Public Relations, Brisbane,

Qld pp. 1-9

Sharp, B. and Sharp, A. (1997). Loyalty programs and their impact on repeat‐purchase

loyalty patterns. International Journal of Research in Marketing, 14(5): 473-486

Shoemaker, S., and Lewis, R. C. (1999). Customer loyalty: The future of hospitality

marketing. .International Journal of Hospitality Management, 18(4): 345-370.

doi:10.1016/s0278-4319(99)00042-0

Smith, A., and Sparks, L. (2009). It’s nice to get a wee treat if you’ve had a bad week:

Consumer motivations in retail loyalty scheme points redemption. Journal of Business

Research, 62(5): 542-547. doi:10.1016/j.jbusres.2008.06.013

So, M., and King, D. (2009). "When Experience Matters" Building and Measuring Hotel

Brand Equity – The Customers’ Perspective. International Journal of Contemporary

Hospitality Management, 22(5): 589-608

Sousa, F. J. (2010). Chapter 9: Metatheories in research: Positivism, postmodernism, and

critical realism. In Woodside, A. G. (Ed.), Organizational culture, business-to-business

relationships, and interfirm networks (pp. 455–503). Bingley, England: Emerald Group 8

Stefano, N., Filho, N. C., Barichello, R., and Sohn, A. (2015). A Fuzzy SERVQUAL Based

Method for Evaluated of Service Quality in the Hotel Industry. Procedia CIRP, 30: 433-438.

doi:10.1016/j.procir.2015.02.140

Suhartanto, D., Clemes, M., and Dean, D. (2013). Analyzing the Complex and Dynamic

Nature of Brand Loyalty in the Hotel Industry. Tourism Review International, 17(1): 47-61.

doi:10.3727/154427213x13649094288106

Surprenant, C. F., and Solomon, M. R. (1987). Predictability and Personalization in the

Service Encounter. Journal of Marketing, 51(2): 86. doi:10.2307/1251131

Tabachnick, B. G., and Fidell, L. S. (2007), Using Multivariate Statistics, Harlow, Pearson

Education,

Tabachnick, B. G., and Fidell, L. S. (2007). Using multivariate statistics (5th Ed.). Boston,

MA: Allyn and Bacon.

262

Taghipourian, M. J., and Bakhsh, M. M. (2015). Loyalty: From Single-Stage Loyalty to Four-

Stage Loyalty. International Journal of New Technology and Research, 1(6): 48-51.

Taherdoost, Hamed, (2016). Sampling Methods in Research Methodology; How to Choose a

Sampling Technique for Research. International Journal of Academic Research in

Management (IJARM), 5(2): 18–27.

Tepeci, M. (1999). Increasing brand loyalty in the hospitality industry. International Journal

of Contemporary Hospitality Management, 11(5): 223-230.

doi:10.1108/09596119910272757

Thomson, M., MacInnis, D.J. and Park, C.W. (2005), The ties that bind: measuring the

strength of consumers’ emotional attachments to brands, Journal of Consumer Psychology,

15(1): 77-91.

Tideman, M. C. (1983), External influences on the hospitality industry, in Cassee, E.H. and

Reuland, R. (Eds), The Management of Hospitality, Pergamon, Oxford: 1-24.

Travel and Tourism Economic Impact 2017 Middle East (2017). World Travel and Tourism

Council.

Travel and Tourism Economic Impact 2017 Saudi Arabia. (2017). World Travel and Tourism

Council.

Trochim, W., Donnelly, J., and Arora, K. (2016). Research methods the essential knowledge

base (Student ed.). Boston, MA: Cengage Learning.

Tsai, S. (2014). Meaning threats heighten consumer attachment: Implications for global brand

management. European Management Journal, 32(6): 991-1000.

doi:10.1016/j.emj.2014.04.005

Verhoef, P., Lemon, K., Parasuraman, A., Roggeveen, A., Tsiros, M., and Schlesinger, L.

(2009). Customer Experience Creation: Determinants, Dynamics And Management

Strategies. Journal of Retailing, 85: 31-41

Watson, G. F., Beck, J. T., Henderson, C. M., and Palmatier, R. W. (2015). Building,

measuring, and profiting from customer loyalty. Journal of the Academy of Marketing

Science, 43(6): 790-825. doi:10.1007/s11747-015-0439-4

263

Watts, S. and Stenner, P. (2005) Doing Q methodology. Qualitative Research in Psychology,

2, pp. 67-91.

Wieseke, J., Geigenmuller, A., and Kraus, F. (2012). On the Role of Empathy in Customer-

Employee Interactions. Journal of Service Research, 15(3): 316-331

Wu, X., Zhou, H., and Wu, D. (2012). Commitment, satisfaction, and customer loyalty: A

theoretical explanation of the ‘satisfaction trap. The Service Industries Journal, 32(11): 1759-

1774. doi:10.1080/02642069.2010.550043

Xiaoli Lin. (2008). Gender and Customer Loyalty A Case of Clothing Retailing. IEEE

International Conference on Service Operations and Logistics, and Informatics,

10.1109/SOLI.2008.4686371.

Yeh, C., Wang, Y., and Yieh, K. (2016). Predicting smartphone brand loyalty: Consumer

value and consumer-brand identification perspectives. International Journal of Information

Management, 36(3): 245-257. doi:10.1016/j.ijinfomgt.2015.11.013

Yi, Y. (1990). A critical review of consumer satisfaction. In: Zeithaml, V. (Ed.), American

Marketing Association, Chicago, 68–123

Yi, Y., Gong, T., and Lee, H. (2013). The Impact of Other Customers on Customer

Citizenship Behavior. Psychology & Marketing., 30(4): 341-356. doi:10.1002/mar.20610

Yi, Y., Nataraajan, R., and Gong, T. (2011). Customer participation and citizenship

behavioral influences on employee performance, satisfaction, commitment, and turnover

intention. Journal of Business Research, 64(1): 87-95. doi:10.1016/j.jbusres.2009.12.007

Zeithaml, V. A., Berry, L. L., and Parasuraman, A. (1996). The Behavioral Consequences of

Service Quality. Journal of Marketing, 60(2): 31. doi:10.2307/1251929

Zeithaml, V.A, L.L. Berry and A. Parasuraman (1996). The Behavioral Consequences of

Service Quality, Journal of Marketing, 65: 81 – 93.

Zineldin, M. (2006). The royalty of loyalty: CRM, quality and retention. Journal of

Consumer Marketing, 23(7): 430-437. doi:10.1108/07363760610712975

264

Appendices

Appendix A Interview ProtocolThis interview is aimed and designed to collect data that will be used to have a better understanding of people’s feelings and thoughts about customer loyalty.

Participant name: Email:

Gender: Occupation:

Interview Details

Location: Date/time:

Duration: No:

Experience Discussed

Type of Destination: # visit :

Interview Detail

1- Aim of the interview

This interview aims to understand customer loyalty that goes beyond the basic elements of behavioural loyalty.

Thank you for agreeing to be a participant at this stage of my research. The questions will be asked about your (favourite and most liked) hotel, restaurant, resort and airline, event or tourism site etc... Please feel free to talk more about anything related to your experience beyond the questions I ask.

2- Purpose of the research & Privacy

This research is part of my PhD at the University of Surrey. Any information provided will only be used for the purpose of this research. All your personal information and contacts will remain anonymous. Personal information will only be used by the researcher and participant to gather or clarify information needed in future.

265

3- Length of interview

The interview is expected to last between 15-60 minutes.

Permission to record

I would very much like to be able to record the interview. Is that OK with you? Yes No

Main Research Question and Research Model

What is loyalty and how does it develop over time? What stages and transitions can be identified in this process of development? What are the roles of human interaction, engagement, value creation and recognition in this development?

Questions

1- Can you think of any tourism or hospitality operation or business that you like very much?

How many times have you been there?

When was the first time you went?

When was the last time you went?

Follow up Questions:

---------------------------------------------------------------------------------------------------------

2- Can you tell me about the first time you went there?

When did you visit?

What did you like about it?

Were there things you didn’t like?

How did you feel about the experience?

What made you come back?

Follow up Questions:

---------------------------------------------------------------------------------------------------------

3- Can you tell me about the second time you went there?

266

When did you go back?

How was it the second time? (better, worse, just as good?

Follow up Questions:

4- Can you think of a particularly positive memory you have visiting here?

What was the occasion?

When was this in time?

Why was it so good?

How did it make you feel? Why?

Follow up Questions:

---------------------------------------------------------------------------------------------------------

5- Can you think of a time when you did not have such a good experience?

What was the occasion?

Why was it not so good?

How did it make you feel? Why?

Follow up Questions:

---------------------------------------------------------------------------------------------------------

6- Can you tell me about the last time you went to this operation?

In what ways do you think it has changed over the time you have been using it?

In what ways has your relationship with xxxx changed over this time?

How do you feel about xxxx now?

Do you think you will continue using xxxx in the future?

Do you think by now you are noticed as a guest? In what way and how?

267

Follow up Questions:

7- Can you please discuss a similar service provider (competitor)?

How your selected provider differs from its competitor?

Follow up Questions:

---------------------------------------------------------------------------------------------------------

8- Have you ever offered advice, recommendations or feedback that has helped the business to grow and operate better? Or you think it would help?

In what ways have you promoted, reviewed or recommended xxxx over the time you have been using it.

Follow up Questions:

9- Would like to discuss anything else or would recommend any change to this interview?

Thank you for your participation

268

Appendix B Example of Interview Conducted

Interview # 3 (Interviewer --- Interviewee)

Hello XXX Thank you for accepting recording this interview thank you very much would like to start the interview

Hello thank you

You welcome OK XXX can you think of any tourism or hospitality operation or business that you like very much.

Yah there is this place … do you need a name of the place.

Yah and you can talk about it

OK, there is this cafe it's called a mora cafe it locates in Guildford. erm like what more you want about the cafe.

It's good for now to know the name and the place of it OK, How many times have you been there?

erm Like infinitive times I've been there like you can say more than Like I've known this place for two years now and I've been there like. I cannot really count that he can say a lot more than twice a month or more than three times or four times a month

Very nice that’s good and can you remember the first time you went there

Yeah, the first time I went there was actually upon a recommendation of a friend of mine. She heard about it or she tried the sweet in it or whatever I really can't remember exactly but the thing is like we went there to try their cakes because she thinks the cakes are the best in Guildford and yah to be honest with you they have as for me they have one of the best cakes in Guildford and that was my first visit to them

Very nice but yes when was the last time you went there.

Ah, Last time I went there it was two weeks before I think yeah yeah.

Nice OK xxx can you tell me about the first time you went there like when did you visit and what did you like about it

OK the first time it was really kind of new to me like of being passing by this place for long and I was like I am going a step in and today I'm going to stop and tomorrow but the thing is like the exterior of the place wasn't welcoming too much it wasn't kind of calling you to get in and I was just like kind of hesitant to get in there but then. Why is that why am hesitant if you are a curious about this thing maybe because it's not the kind of places I used to go before it more homey style and So I avoided that place not because I was scared I was like I'm just going to go to other places like familiar places to me and I have spent times going to those familiar places even though some to some of them I don't like the food they serve but then after a meeting up with like going to that place with my friend of mine I tried in desert that day and then I was like I'm going to try their food again and since then I have been going like not because I wanted to try a new food I know what they have I can I can like by heart tell you what they are in their menu but it's like I just like to be there.

Can you tell me why you liked to be there?

269

Well, there are many reasons. First of all, it was really close to where I live so whenever I feel like I want to eat something grab something or spend some time killing some boredom or whatever because I live alone I Was like. I used to go there and another thing is like it has this very unique kind of cuisine it's kind of Mediterranean cuisine but in a way that's made you feel it it's homemade food, it's not like chain food is not like processes and. Yet the portion is really huge to me but I don't care about the portion anyway I've never finished the dish. And the people who work there like the people are really different they always make you feel welcome they. In my condition like in my case. We ended up being I could say friends or so like an acquaintance, they know my name I know their names. I've been always welcome to get into the place I've reached to the extent that I seat to myself I serve myself and I pick up things from myself

Wow

and there were like they would talk me through what's going on what I'm doing like the most time I've been there when I was doing transcription for my research and I always like I wanted to find a place where I won't be interrupted It's not like they didn't have interruption like the music was too loud with them but I really loved the music like the music was different and I spent those like months transcribing with them and that made them curious to know who I am what I'm doing why I'm always sitting alone steering at my laptop doing something. So then they came to know who I am what I'm doing and. Since then or even before that they were like. So tell us where did you reach in your study when you going to finish when you going to graduate what happened when did you find so it was kind of it was kind and nice to feel that somebody is interested about you and about really doing. You know and that made me go there I just felt comfortable

Very nice xxx and just to go to that first time you went there and you talked about your feeling and the experience if you got to remember that the first time and what made you come back

OK the first time seriously what made me come back that I was interested in the menu that’s the first time I like we've ordered Pistachio cake with chocolate and lemon cake and like orange cake I guess and all of them were really really awesome and then i was like if they are this good in cake they must be very much good in food so like I mean the main course and to be honest that what made me come for the second time but then food was never the reason for me like yeah I'm hungry I want to eat something good I will eat something clean if you know what I mean but then many many things like affected. This relationship that I have to those people

This is very interesting we will talk about it later really interesting can you tell me about the second time you went there like when did you go back and how was it the second time according to the first time

Ok, so the first time I was with friends the second time I was alone and it was good. I felt a bit uncomfortable if you know what I mean the second time like I don't know this place I don't know those people but it's like it was kind of customer-provider relationship you know like this is what I want yes ma'am thank you ma'am and all these things you know. And that was my second time I really don't remember third fourth and five because they've been like many many times but if you ask me now like even people when I see them in the street they stop and talk to me like we were just walking we just tumble into each other you know now. So there were like how are you didn't come recently and what are you doing all these things so they recognize my face

Very interesting

Thank you

270

and that drove me to this question which is can you think of I'm sure there are many like positive memories and what was the occasion when was it and why was it so good these memories can you talk about some of them

Yah the day they were kind of. Like I can't I can't forget that scenario I was sitting there in my laptop and then there were the switchers like I really don't feel OK calling her waitress anyway and she came and she was like I want to ask you something that you do what are you doing like you come each day doing this thing and then I started talking about my PhD and what I am doing and then she started taking about her job and her name and where it comes from and how we are doing my name and you know we had that kind of conversation well breaking ice conversation and then apparently she told everyone in the restaurant that day and all of them they. Came to know me

and this is like one memory Other memories I have like it's start the moment I said they were like they smile like we have in our language they smile from ear to earmuffs so they were like smiling broadly widely and then I started seating up myself like lately and they know what I want they know what I drink they know what kind of food that I tried and what I didn't try and they recommend things according to that and I was really impressed.

The one thing they did for me when they have this reward scheme thing where you collect point as per of the number of meals that you have or visits and I never ask for that I'm not a kind of person who would stamp a card. Because seriously my visits to their place wasn't like it has anything to do with number and with collecting stamps or whatever I just felt like going and I went there still and then they were like she picked up the loyalty card or points card and she's stamped all of them at the same time with point and I was really like wow and then at the end it says free coffee but then she was like it's not allowed we substitute this thing to something else but because it's you I'm going to give you free Tea

Wow because you are

because it's you because you don't drink coffee and I was like yeah I don't drink fond of coffee anyway and I was really good that was really good and. Other memories. I think this was the best memory that I had and then what I feel connected to the place in a way that I know those people I know what they're doing I know when they are suffering yeah I remember something happened to me once like I was. Kind of notions of seafood or something that has something medically happened to me and then I couldn't eat for a couple of days. I felt this is the safest place to go when I cannot eat anything else because I know them I know their food that was the reason initially but then when I went for the first time and then the second time they were like they literally came to me and they were like Are you OK you haven't been eating good like in the last two to three visits. And I was like yeah I don't feel this I don't feel that and then they were like OK we're going to take this thing and we're going to bring you something else that will increase your appetite and make you feel better and I really appreciate that things

What that really make you feel like about this operation or the People

What do you mean sorry?

I mean the relationship like to what level now you think you are being one of them or yeah they really do care what I understood from your stories they knew you the recognition you

they do they like the aspect of recognition that was really good for me and like too good for me but the thing is why I felt welcome I felt that Like they would do things for me that they wouldn't do for someone else like they would serve me dinner menu when it's still morning and even the chef was fine to do things for me why it's not like I met this shift but it's like the message that been communicated to him like they literally said I was like I want to order this thing but I'm sure like I know it's not the

271

right time for it and they were like No no no it's OK It's OK we going to ask the chef she went there and she asked the chef for me like it happened to me twice while and then they were like we told the chef that you are like repeated customer with us and we know you well it's really like we do appreciate that you visit us and you come and one more thing there was this girl that she works there and then she was like. This is my final shift in this restaurant today I'm moving to work in blah blah blah blah blah I'm going to miss you a lot so please visit me there while I was like I don't know if it's like. Fifty percent about her because since she left. I only went once I think OK yeah maybe but like all other people they really like know me and we have this good relationship I have this good relationship with them and with that particular girl it was really different I feel

That really nice very interesting xxxx and for can you think of any time when you did not have such a good experience and how that makes you feel

Well to be honest. There were kind of like pitfalls if you want to call them or like minor mistakes especially if you're coming from a hospitality background and you know what's right or wrong. But I didn't care really

Why you didn't care

Like I didn't care because you know like I'll give you an example it's like when you are living in a place and you are familiar and attached to that place and then whatever wrong happened to that place you don't just leave it and walk away yeah you get used to it the way it is and you adjust the way it is I think that's what I've been through well even sometimes too when you were dirty the service wasn't like as before but I think that's because they felt comfortable with me

So they treat you as different.

yeah because like the other day I was like I was starving and I was like hi and then they were like Yeah they were like the next like behind another tell and they were like yes please welcome and like it's not the way you like it's not the way to call you from far distance so I just got in and then I went upstairs and I seated myself I opened the window to myself. I have them in you and I was like I was even standing I didn't set it and I was like you know I'm going to go for ice and tea and vanity and then they were like yeah some tea is here and it was already ready. And I was like wow yeah

To be honest, you made really wanted to go

I think you should.

OK xxxx can you tell me about the last you went to this operation in a sense like if you think about the changes over time you have been using this operation or going to that operation and the relationship that changed over that time

erm I like at the beginning it was like any other cafe and any other restaurant. I am kind there. Like. I'm coming from a background where attachment to restaurants or to like food providers is not that much like big if you like. I am kind of foody person I'm a picky person I go to nice places and all those things but then with them it wasn't at the beginning it wasn't if you know me it wasn't a place that you would say xxxx will go for this is one thing but then by the time I felt like this is the only place I would go for in Guildford

Why is that

Because of the people, I think more than anything else. I. You know like when you walk into a place and you get to pick up whatever you want and you get to sit to it wherever you want. You get to speak up yourself really they know you it's not like they just know your name they know everything about you what do you do where do you study where are you from. I know all these things. And then. I feel kind of connected to the place. A little much connected to it. In a way I. Like it's the one thing that

272

comes to my head whenever I want to invite someone or have some good time. Or do some good work you know like it's my favourite

Have you ever invited someone?

Yah have invited a lot of people

But why you invited them to that place is it because

erm

It wasn't, to be honest, it wasn't the only place that I invited people to go in Guildford . It's. I just wanted them to feel what I feel. Like I wanted them to know that there is this place, where this good food and those very very amazing and nice people exist in Guildford and I think the place itself like the operation itself really deserves to be known

And has anything to do with being recognized there being known at that restaurant when you invited people

Yeah yeah well it's not to show off to be honest but it's like it's really good when you transmit that message to others in a way like you walk in very confident about what's going on and they feel confident in the place they feel welcome and that's what happened they didn't even bother picking up things to eat I was the one who was like this person bring that up for that person bring to that I just knew what they were and they were they joined it really. Yeah, I received many comments saying wow they know you they know your name and but initially this was in the intention now but. I wouldn't lie like being recognized

So it just a question you will continue using this operation

Of course

Nice ok a question that must be asked can you please discuss a similar service provider like competitors and your selected provider why is it different than the competitor

This is kind of a hard question. Because you are like if it's my first visit I would compare it to for example Bill restaurant bells restaurant or Jackson and rave restaurant or I wouldn't even compare it to Starbucks Uncle Sam all those things because they think they would never go to that level but if you ask me now I would never compare it to any other place I don't feel it's right to compare it because I have been to all these places many many times and I've met people and there are other like there's this French restaurant where people know me but It's still the way you feel welcome the way you feel recognized the way you feel you can get the best of those people and the best of this place I didn't find it anywhere else

that's great to hear and the going to the next question have you ever offered of any advice recommendation or feedback that has helped the business to grow or operate better or at least you think it would help if they .

Well it's not like a sat with people and I was like listen to me I think from my observation of this there is a better No but there were like they were they had this trainee and she was like new and she was offering food that was really funny because they picked me from all other tables to be the victim you know and I was like maybe because they knew I'm fine with that and I was really fine with that. I had some kind of comments on that person but it's not like for the operation as a whole and it's not like because. This is my recommendation for you guys you no because I know the level of service they have and she didn't meet that level by that point but maybe she's better now why didn't encounter with her

273

So you talked to her about the

I did it and I remember everyone was like laughing because I was like this is not the way they pull tea this is not the way they put the cutlery this is not their way and she was like Yeah I am known I know you’re new

very nice and if you may talk about how when you promote if you promote this place or recommend this place over time you have used this place I am sure you talked because you invited your friends and maybe you talked about it to other the way you talk about it the way you recommend it to others can you please talk to me about it

Ahh well, I think it's something on me like I tend to talk highly about things when I'm excited about them. But. I don't know like I just recommended giving It's a nice place with nice service and. I was like yeah there's this place I know and there's this place I have been to like many times I know there's this place next to my home and that I really like going and like people who know me know that I'm not a person who works in coffees this is not me but I was working in the cafe meaning this cafe is different. You know. and that made many of my friends go there even without me afterwards like they tried it with me it happens all the same what happened to me they tried it with me and they started going there. And even Yeah this place sometimes I take it as shelter from the rain when it's really rainy and I'm not having my jacket and my umbrella and they just bring me a cup of tea because I'm cold.

Wow, that's really nice. You make me want to go there seriously

I think you should.

So Just question like if you ever heard someone talking about it negatively or. If you see a comment online or somewhere talking about it negatively what would be your reaction what would you do?

I don't think I'm going to be fine about that and I'm going to advocate for the place and I think I'm going to stand For it because in my point of view this is the least you can do for such a place. Maybe when you go you will be like what the hell she was talking about this is just a random place but for me, it wasn't like I wouldn't take anyone talking badly about. Learning to save the company or the place or whatever the people precisely because they were doing their best and they were making you comfortable and they are still.

That’s really nice to hear

And I am really enjoying this interview I did really want to take more time but would you like to discuss anything else or would recommend any changes to this interview.

Like I think the interview is, in general, its really good erm some of the question they were kind of broad to but I think this is the point of the interview to make you feel free i think it is an interesting interview and I would like to hear back from you like what did you find and what was interesting part of it

Thank you very much for your participation and seriously, I enjoyed this interview so much

Same here

Thank you so much

274

Appendix C (First Q-sort Study Result)

Loyalty stages Statements (ITEMS)

Statements First success(11) Behavioural Loyalty (3)

Emotional Attachment (4)

Affective Commitment (2)

Belonging CCB(2)

Sentence change

1. I say positive things about this hotel to other people

60% 0 0 40%

2. I recommend this hotel to someone who seeks my advice

70% 10% 0 20%

3. I encourage friends and relatives to do business with this hotel

20% 0 60% 20% !!!

4. I consider this hotel my first choice to stay in

80% 0 20% 0

5. Do more business with this hotel in the next few years

40% 10% 40% 0 I would do more business with this hotel in the next few years

6. I am happy with the service I received

60% 20% 10% 0

7. I have developed a positive relationship with the hotel

10% 40% 50% 0 7.I have developed a positive feeling about this hotel

8. The employee(s) in this hotel make(s) me very happy

20% 80% 0 0

9. If someone praised the employee(s) in this hotel, I would feel pleased

0 10% 10% 80%

10. When I am dining alone, it is not awkward to eat at this hotel because the employee(s) is/are friendly and sociable with me

20% 50% 10% 20%

11. When I receive service from the employee(s) in this hotel, I feel that I can trust him/her/them completely

20% 30% 10% 40%

12. I have a passionate interest in the employee(s) in this hotel

0% 30% 20% 50%

13. At times when I stay in other hotels and have some trouble or difficulty, the employee(s) of this hotel come to mind

0% 50% 20% 30%

14. When I feel depressed, the employee(s) provide(s) me with comfort during the process of serving me in this hotel.

0% 40% 10% 40%

15. When I place an order in this hotel, I have faith in the employee’s advice/suggestions.

10% 30% 40% 20%

16. I would feel sorry if the employee(s) in this hotel quit his/her/ their job(s).

0% 30% 10% 60%

17. The hotel ethics represents me 0% 10% 20% 70%

275

18. I have positive memories associated with this hotel

20% 80% 0 0

19. I have a pleasure dealing with this hotel

10% 40% 40% 10%

20. I am willing to pay more for the hotel services

50% 30% 10% 10%

21. I am proud that I use the services of this hotel

10% 20% 30% 20%

22. I want to help this service organization achieve its goals

0% 10% 40% 50%

23. I have a special relationship with this service organization

10% 10% 40% 30%

24. I usually agree with this organization’s policies and procedure on important matters

20% 10% 10% 50%

25. This organization inspires the best in me in the way of being a good customer

0% 10% 30% 60%

26. Doing business with this organization is enjoyable

20% 50% 20% 10% Doing business with this organization makes me feel good

27. The longer I stay with this service organization, the harder it is to leave

20% 30% 40% 10%

28. I care about the fate of this service organization

0% 10% 30% 50%

29. I have the desire to maintain the relationship with this hotel

30% 0% 60% 10%

30. I am willing to make a sacrifice to continue this relationship

10% 0% 60% 30%

31. When I have had a useful idea on how to improve service, I let the service provider know

10% 0% 60% 30%

32. When I have had feedback about the service, I filled out a customer survey form

10% 10% 60% 10%

33. I have informed the service provider about good service received from individual employees.

30% 20% 20% 20%

34. I have said positive things about the service provider and/ or its employees to others

40% 20% 0% 10%

35. I have recommended the service provider to others

50% 10% 10% 30%

36. I have encouraged friends and relatives to use the service providers

50% 10% 20% 20%

37. I have assisted other customers when they needed my help

10% 0% 20% 70%

38. I have taught other customers to use the service correctly

10% 0% 20% 70%

39. I have put up with it when the service was not delivered as expected

10% 20% 70% 0%

40. I have been patient and waited for the employee to recover from a mistake

10% 30% 50% 0%

41. I have adapted to the situation 0% 0% 50% 40%

276

when I have waited longer than I expected to receive the service

Loyalty Transitions Statements (ITEMS)

Statements First success(22) Attract And Acquire (12)

Customer Engagement (4)

Personalization’s (4)

Recognition And Appreciation (2)

Sentence change

1. The front desk was visually appealing

80% 20% 0% 0%

2. The employees had clean, neat uniforms

90% 0% 0% 0%

3. The hotel atmosphere was inviting

90% 0% 0% 10%

4. The outdoor surroundings were visually attractive

80% 10% 0% 0%

5. The hotel was bright and well lighted

100% 0% 0% 0%

6. The hotel’s interior and exterior were well maintained

90% 0% 0% 10

7. I got what I paid for 90% 0% 0% 10%8. Employees responded

promptly to my requests40% 10% 10% 20%

9. Employees were willing to answer my questions

50% 20% 10% 10%

10. Room service was prompt

80% 0% 10% 10%

11. Employees treated me with respect

40% 30% 0% 20%

12. The hotel provided a safe environment

90% 10% 0% 0%

13. Charges on my account were clearly explained

80% 10% 0% 0%

14. I received undivided attention at the front desk

50% 40% 0% 10%

15. Reservationists tried to find out my particular needs

10% 20% 60% 10%

16. Service providers teased you in a friendly way

10% 60% 10% 20%

17. Service providers discussed your personal likes and dislikes

0% 20% 70% 10%

18. Service providers Employee told you

10% 60% 20% 10%

277

something personal about themselves

19. Service providers Employee encouraged you to say something personal about yourself

0% 40% 60% 0%

20. Service providers used good manners in your presence

80% 10% 0% 10%

21. Service providers directly answered your questions

30% 50% 0% 20%

22. Service providers seemed appreciative/thankful

50% 10% 10% 30%

23. Service providers listened carefully to what you had to say

10% 50% 0% 40%

24. Service providers acknowledged your presence

30% 40% 10% 20%

25. Service providers have been sympathetic to you concerning a problem with a product or service

0% 70% 20% 10%

26. Service providers apologized if something was not satisfactory

40% 20% 10% 30%

27. Service providers showed a genuine concern for your well being

10% 40% 10% 40%

28. Service providers have great knowledge about the service and product

40% 30% 0% 20%

29. Service providers remembers the guest’s preferences

0% 20% 70% 10%

30. Service providers make the guest feel really special

0% 30% 50% 20%

31. Service providers give that bit extra by going beyond what is expected

10% 30% 30% 30%

32. Service providers show sincere interest in the guest’s specific needs

0% 30% 30% 40%

33. Service providers are genuinely concerned about making the guest’s stay as comfortable as possible

20% 30% 30% 20%

34. The guest is confident the service provider will attend to any special need

10% 40% 30% 20%

35. Feelings of affection build between the guest

10% 60% 10% 20%

278

and the receptionist after a few visits

36. Hotels offer guests the opportunity to co-construct their experience

0% 20% 70% 10%

37. Hotels offers individually customized services

10% 10% 70% 10%

38. Hotels cares about customer events

0% 30% 10% 60%

39. Hotels offer special rewards for loyal customer

0% 10% 20% 60%

40. The service provider in charge of my account remembers birthdays and anniversaries

0% 0% 60% 40%

41. Presented with an unexpected welcoming token or gift

10% 20% 0% 70%

42. The hotel staff knew my name and/or nationality

0% 20% 30% 50%

43. The hotel staff treated me with full respect

40% 30% 0% 30%

44. The hotel staff made eye contact with me during conversation

60% 30% 10% 0%

45. The hotel made me feel like an important person

0% 30% 30% 40%

46. The hotel staff gave me authentic smiles all the time

50% 30% 10% 10%

47. Understanding my special requirements while staying in a hotel

10% 20% 60% 10%

48. Building a good relationship rather than making money seemed to be the most important drive of the hotel

0% 50% 10% 40%

49. Given warm “goodbye” after checking out at the counter

30% 40% 0% 30%

50. Entertained with the services provided by the hotel

70% 20% 10% 0%

51. Treated as a friend rather than a customer

0% 50% 20% 30%

Appendix D (Second Q-sort Study Result)

Loyalty stages Statements (ITEMS)

279

Statements Second test Behavioural Loyalty

Emotional Attachment

Affective Commitment

Belonging CCB

Sentence change

1. I say positive things about this hotel to other people

70% 10% 10% 10%

2. I encourage friends and relatives to do business with this hotel

60% 0 10% 30% I suggest friends and relatives to do business with this hotel

3. Do more business with this hotel in the next few years

30% 30% 30% 10% I would do more business with this hotel in the next few years

4. I have developed a positive relationship with the hotel

10% 30% 40% 20% I have developed a positive feeling about this hotel

5. If someone praised the employee(s) in this hotel, I would feel pleased

0 60% 10% 30%

6. When I receive service from the employee(s) in this hotel, I feel that I can trust him/her/them completely

0 80% 10% 10%

7. I have a passionate interest in the employee(s) in this hotel

10% 50% 20% 20%

8. At times when I stay in other hotels and have some trouble or difficulty, the employee(s) of this hotel come to mind

10% 60% 20% 10%

9. When I feel depressed, the employee(s) provide(s) me with comfort during the process of serving me in this hotel.

0 60% 10% 30%

10. When I place an order in this hotel, I have faith in the employee’s advice/suggestions.

30% 60% 0 10%

11. I would feel sorry if the employee(s) in this hotel quit his/her/ their job(s).

0 70% 10% 20%

12. The hotel ethics represents me 20% 40% 10% 30%13. I have a pleasure dealing with this

hotel30% 40% 30% 0

14. I am willing to pay more for the hotel services

30% 50% 0 20%

15. I am proud that I use the services of this hotel

30% 10% 40% 20%

16. I want to help this service organization achieve its goals

0 0 40% 60% I want to help this hotel achieve its goals

17. I have a special relationship with this service organization

10% 20% 60% 10% I have developed a positive

280

relationship with this hotel

18. I usually agree with this organization’s policies and procedure on important matters

20% 10% 20% 40% I usually agree with this hotel’s policies and procedures on important matters

19. This organization inspires the best in me in the way of being a good customer

10% 40% 20% 30% This hotel inspires the best in me in the way of being a good customer

20. Doing business with this organization is enjoyable

10% 30% 50% 10% Doing business with this organization makes me feel good

21. The longer I stay with this service organization, the harder it is to leave

40% 20% 30% 10% The longer I stay with this hotel, the harder it is to switch to another

22. I care about the fate of this service organization

20% 10% 50% 20% I care about the success of this service organization

23. When I have had a useful idea on how to improve service, I let the service provider know

0 10% 20% 70%

24. When I have had feedback about the service, I filled out a customer survey form

10% 0 10% 70%

25. I have informed the service provider about good service received from individual employees.

10% 10% 0 80%

26. I have put up with it when the service was not delivered as expected

10% 10% 30% 50%

27. I have been patient and waited for the employee to recover from a mistake

10% 30% 30% 30%

28. I have adapted to the situation when I have waited longer than I expected to receive the service

20% 20% 20% 40%

Loyalty Transitions Statements (ITEMS)

281

Statements second test Attract And Acquire

Customer Engagement

Personalization’s Recognition And Appreciation

Sentence change

1. Employees responded promptly to my requests

30% 60% 0% 10% Employees responded quickly to my requests

2. Employees treated me with respect

30% 30% 0% 30%

3. I received undivided attention at the front desk

50% 20% 10% 20% I received good attention at the front desk

4. Reservationists tried to find out my particular needs

20% 20% 50% 10%

5. Service providers discussed your personal likes and dislikes

10% 0 60% 30% Service providers discussed my personal likes and dislikes

6. Service providers Employee encouraged you to say something personal about yourself

0 40% 50% 10% me

7. Service providers used good manners in your presence

60% 30% 0 10% my

8. Service providers seemed appreciative/thankful

30% 30% 0 40%

9. Service providers listened carefully to what you had to say

30% 50% 10% 10% I

10. Service providers acknowledged your presence

30% 20% 10% 40% my

11. Service providers apologized if something was not satisfactory

60% 0 10% 30%

12. Service providers showed a genuine concern for your well being

10% 50% 30% 10% my

13. Service providers have great knowledge about the service and product

60% 30% 10% 0

14. Service providers make the guest feel really special

20% 10% 30% 40% Service providers make me as a guest feel really special

282

15. Service providers give that bit extra by going beyond what is expected

20% 40% 20% 20%

16. Service providers show sincere interest in the guest’s specific needs

10% 20% 40% 30% Service providers show sincere interest in my specific needs

17. Service providers are genuinely concerned about making the guest’s stay as comfortable as possible

40% 20% 40% 0 me

18. The guest is confident the service provider will attend to any special need

0 10% 40% 50% I am

19. Feelings of affection build between the guest and the receptionist after a few visits

30% 40% 0 30% Me

20. Hotels cares about customer events

0 0 50 50% My special

21. Hotels offer special rewards for loyal customer

10% 20% 10% 60% Me as a loyal customer

22. The service provider in charge of my account remembers birthdays and anniversaries

10% 10% 40% 40%

23. The hotel staff knew my name and/or nationality

0 20% 70% 10%

24. The hotel staff treated me with full respect

30% 10% 10% 50%

25. The hotel made me feel like an important person

10% 30% 0 60%

26. The hotel staff gave me authentic smiles all the time

50% 40% 0 10%

27. Understanding my special requirements while staying in a hotel

105 20% 40% 30%

28. Building a good relationship rather than making money seemed to be the most important drive of the hotel

50% 40% 0 10%

29. Given warm “goodbye” 30% 50% 0 20%

283

after checking out at the counter

30. Entertained with the services provided by the hotel

80% 10% 0 10%

31. Treated as a friend rather than a customer

10% 30% 30% 30%

Appendix E Items Randomized in Excel

284

285

286

Appendix F Survey Arabic Version

 

وبركاته الله ورحمة عليكم ،السالم  المتحده بالمملكة سيري جامعة في دكتوراه باحث ، الحارثي ، ذيب

ميدانيه دراسه باجراء حاليا وكيفية  أقوم ماهية .  حول هذا الفنادق مجال في العمالء والء تطوير هم المستهدفه الفئه ان علما الدكتوراه درجة على للحصول رئيسي متطلب مستخدمي البحث

. التكرم يرجى السعودية العربية المملكة في هذا  الفنادق في الواردة األسئلة جميع على باإلجابة . سريه المقدمة المعلومات جميع ستكون يمكنك ما بأفضل البحث  االستبيان ألغراض وتستخدم

فقط حوالي.  العلمي تسنغرق سوف االستبيان علي . 12االجابه في مشاركتك أن علما دقيقة . في تتردد فال باالستبيان، يتعلق فيما بالباحث االتصال إلى بحاجة كنت إذا تطوعية البحث هذا

اإللكتروني البريد عبر بي  االتصالt.alharethi@surrey.ac.uk

  ووقتك جهدك علي لك شكرا .و

البقاء وتفضل يعجبك ما فندق في التفكير يرجى فضال الالحقه، األسئلة جميع على اإلجابة عندالسعودية العربية باالمملكة غيره عن فيه

.الفندق؟ نوع إلى اإلشارة يرجى

فنادق. ٢مستقل. ١ الفندق .............اذكر سلسلة اسم

وانت م قضيتها التي الفترة أو المدة هي الفندق  تترددا هذاسنة. ١ من أقل سنة 2-1من. 2 من. 4سنوات 5-3من. 3 سنوات 5إكثر

هناك؟ أقمت مرة كممن. 3مرات 6-4من. 2مرات 3-1من. 1 سنوات 6أكثر

ذا ؟ ما الرئيسيمنسفرك الهدفعمل. ١ واألصدقاء. ٣ سياحة. ٢ زيارة األهل . ٤ زيارة أخرى. أسباب

عام؟ بشكل الحالية أو السابقة إقامتك تجربة كيفكانت سلبيه. ٣ عادية. ٢ إيجابيه. ١

:( الخدمة ( تجاه مشاعرك و المقدمه الخدمات علي الضوء يسلط أ الألول المحورالفندق لك يقدمها  التي

مقياسمن - باستخدام أدناه جملة كل تجاه شعورك إلى اإلشارة ، ٧إلى ١يرجى . ١حيث بشدة = أوافق بشدة ٧و ٦ ٥ ٤ ٣ ٢ال أوافق .

287

عبارة [√] لكل واحدة مرة عالمة وضع طريق عن المفضلة إجابتك اختيار يرجى الالعبارات

اواف ق

بشده

اواف٢٣٤٥٦ ق

بشده

بصريا. ١ جذابة كانت بالفندق المحيطة المناطقافضلها. ٢ التي األشياء يتذكرون الخدمة مقدميعلى. ٣ لإلجابة مستعدين كانوا بصدر الموظفون أسئلتي

رحبودية. ٤ بطريقة يمازحوني الخدمة مقدميالخاصة. ٥ احتياجاتي معرفة حاولوا االستقبال موظفيناألوفياء. ٦ للعمالء خاصة مكافآت يقدم الفندق هذالطلباتي. ٧ بسرعة الموظفين استجابنفسه. ٨ عن شخصيًا شيئًا الخدمة مزود لي قالبوضوح. ٩ شرحها تم حسابي على التي الرسومبصريا. ١٠ جذاب كان االستقبال مكتبأحبها. ١١ التي الشخصية االشياء الخدمة ناقشمزودين

وأكرههاموظف. ١٢ وبين بيني بنيت والمحبة المودة مشاعر

زيارات عدة بعد االستقبالكامل. ١٣ باحترام يعاملوني الفندق موظفينقوله. ١٤ اود كنت لما شديدة بعناية استمع الخدمة مقدمأي. ١٥ بشأن معي متعاطفين كانوا الخدمة مقدمين

خدمة أو بمنتج تتعلق مشاكلجنسيتي. / ١٦ أو و اسمي عرفوا الفندق موظفينوأنيفة. ١٧ نظيفة موحدة أزياء يرتدون كانوا الموظفونشخصمهم. ١٨ كأنني أشعر جعلني الفندقلرفاهيتي. ١٩ حقيقيًا اهتماما أظهروا الخدمات مزودينتجربتي. ٢٠ بناء في للمشاركة الفرصة أعطاني الفندق

الخاصة٢١ .ً وجذابا مرحبا كان العام الفندق جوآمنة. ٢٢ بيئة يوفر الفندقممتازه. ٢٣ بحالة كانت للفندق والخارجية الداخلية البيئةجدا. ٢٤ جيدة واإلضاءة مشرق كان الفندقحار. ٢٥ بوداع قوبلت أو أعطيت الفندق من المغادرة عندمتطلباتي. ٢٦ مع تتوافق خدمات لي قدم الفندق

فردي بشكل الشخصيةاالستقبال. ٢٧ مكتب عند جيدا وانتباها معاملة تلقيتمباشرة. ٢٨ أسئلتي على باإلجابة قاموا الخدمات مقدمينهذا. ٢٩ في اإلقامة أثناء دائما فهمها يتم الخاصة متطلباتي

الفندقحقا. ٣٠ مميز بأنني أشعر يجعلوني الخدمة مزودينالعمالء. ٣١ بمناسبات يهتم الفندقأعياد. ٣٢ يتذكر حسابي عن المسؤول الخدمة مقدم

السنوية الذكرى واحتفاالت الميالدمتوقعة. ٣٣ غير و مفاجأة ترحيبيه هدية لي قُدّمت لقدسريعة. ٣٤ كانت الغرف خدمة

288

أجله. ٣٥ من دفعت ما مقابل جيدة خدمة على حصلت أنا

:( الخدمة ( مقدم تجاه فعلك وردة استجابتك علي الضوء يسلط ب الثاتي المحور  

مقياسمن - باستخدام أدناه جملة كل تجاه شعورك إلى اإلشارة ، ٧إلى ١يرجى . ١حيث بشدة = أوافق بشدة ٧و ٦ ٥ ٤ ٣ ٢ال أوافق .

عبارة [√] لكل واحدة مرة عالمة وضع طريق عن المفضلة إجابتك اختيار يرجى الالعبارات

اواف ق

بشده

٢٣٤٥٦٧ اواف ق

بشده

تكون. ١ عندما األمر عن التغاضي أو بالتساهل أقوم أناتكون أن متوقع هو كما ليست المقدمة الخدمة

تحسين. ٢ كيفية عن مفيدة فكرة لدي يكون عندمابذلك الخدمة مزود اخبر أو أعلم الخدمة،

في. ٣ الثقة كامل عندي الفندق، هذا في طلبًا أضع عندما. الموظف اقتراحات و نصائح

تلقيتها. ٤ التي بالخدمة سعيد أنا٥ ( يجعلوني. ( الفندق هذا في الموظفون أو الموظف

للغاية سعيدالعمالء. ٦ استطالع نموذج بملء دائًما أقوم أناالفندق. ٧ هذا مع إيجابية عالقة طورت أنا٨ ( في. ( الموظفين أو الموظف في شديد اهتمام لدي أنا

الفندق هذاالخدمة. ٩ استخدام كيفية آخرين عمالء بتعليم قمت أنا

صحيح بشكلبحاجة. ١٠ كانوا عندما آخرين عمالء بمساعدة قمت قد أنا

لمساعدتي١١ ( هذا. ( في الموظفين الموظف باالكتئاب، شعرت إذا أنا

خدمتي عملية أثناء الراحة لي ويقدمون يوفرون الفندقالصعوبة. ١٢ ليسمن ، بمفردي الطعام اتناول عندما أنا

( الموظفين ( الموظف ألن الفندق هذا في الطعام تناولمعي ولطيفين ومتعاونين ودودين

و. ١٣ أخرى فنادق في أقيم عندما األحيان بعض فيذهني إلى يتبادر الصعوبات، أو المتاعب بعض تواجهني

( الفندق ( هذا موظفي أو موظفمع. ١٤ يتعاملون أنهم واألقارب األصدقاء على أقترح أنا

الفندق هذافيه. ١٥ واإلقامة للحجز األول اختياري الفندق هذا أعتبر أناشخصيطلب. ١٦ ألي الفندق هذا أوصى أن أود أنا

مشورتي أو نصيحتيتلقيتها. ١٧ التي الجيدة الخدمة عن الفندق أبلغت قد أنا

. الموظفين منلألشخاص. ١٨ الفندق هذا عن إيجابية أشياء أقول أنا

اآلخرين

289

جيدا. ١٩ شعورا يعطيني الفندق هذا مع التعامل٢٠ ( هذا. ( في الموظفين الموظف من خدمة أتلقى عندما

تماًما بهم أو به الوثوق يمكنني بأنه أشعر أنا الفندق،الفندق. ٢١ هذا مع مرتبطة إيجابية ذكريات عندي أنااذا. ٢٢ الفندق لهذا اكثر مبلغ لدفع االستعداد أتم على أنا

االمر تطلبأهدافه. ٢٣ لتحقيق الفندق هذا مساعدة أريد أناالفندق. ٢٤ هذا بنجاح أهتم أناالموظف. ٢٥ ترك إذا باألسف أشعر سوف أنا

. / ( وظائفهم( أو وظيفته الفندق هذا في الموظفونالفندق. ٢٦ هذا مع عالقتي على الحفاظ في الرغبة لدي أنا٢٧ ( هذا. ( في الموظفين بالموظف شخصما أشاد إذا

والسرور بالفرح فسأشعر ، الفندقالفندق. ٢٨ هذا خدمات استخدم بأنني فخور أناهذه. ٢٩ لمواصلة تضحية لتقديم االستعداد أتم على أنا

الفندق هذا مع العالقة

:( الديموغرافية ( و االجتماعية الخصائص ج الثالث المحور

عبارة [√] لكل واحدة مرة عالمة وضع طريق عن إجابتك اختيار يرجى

جنسك ١ هو أنثى- ٢ ذكر- ١ما

جنسيتك ٢ هي ......ما

العائلي؟ ٣ وضعك هو أخرى- ٣ أعزب- ٢ متزوج- ١ما

مستواك ٤ هو ماالتعليمي

الثانوية- ١ . ٣ جامعي- ٢ المرحلة عليا- دراسات٤... ( حدد- ( أخرى

عمرك؟ ٥ .......كم

. االستبيان هذا عن لإلجابة وقتك من جزءًا الستقطاعك  نشكرك

290

Appendix G Survey Final Version

Hello, my name is Thaib Alharethi, a PhD researcher at the University of Surrey conducting a research on the development of customer loyalty in the hotel industry in Saudi Arabia. This research is a major requirement of my PhD degree. Please answer all the questions provided in this questionnaire as best as you can. All information provided will be anonymised. Filling the questionnaire will take about 12 minutes. Your participation in this research is voluntary. If you need to contact the researcher regarding the questionnaire, please feel free to contact me via email t.alharethi@surrey.ac.uk

Thank you.

When answering all the questions below, please think of a hotel that you like and would prefer to stay in in Saudi Arabia.

Please indicate the type of hotel?

291

1. Independent 2. Chain Hotel Name ………

How long have you been using it?

Less than a Year 1-2 year 3-5 years More than 5 years

How many times have you stayed there?

1- 3 times 4- 6 times More than 6 times

What is the main purpose of your travel?

Business Leisure Visiting friends & family Other

How is/was your overall experience at your current/last stay?

Positive Neutral Negative

Section A: This section examines your feelings toward the service offered by this business.

Please indicate your feeling toward each statement – using a scale of 1 to 7, where 1 = strongly disagree; 2 3 4 5 6 and 7strongly agree.

Please choose your favoured answer by marking [√] once for each statement

Statements 1 2 3 4 5 6 71. The outdoor surroundings were visually attractive2. Service providers remember my preferences3. Employees were willing to answer my questions4. Service providers teased me in a friendly way5. Reservationists tried to find out my particular needs6. This hotel offers special rewards for loyal customer7. Employees responded quickly to my requests8. Service providers told me something personal about

themselves9. Charges on my account were clearly explained10. The front desk was visually appealing11. Service providers discussed my personal likes and

dislikes12. Feelings of affection have built between me and the

receptionist after a few visits13. The hotel staff treated me with full respect14. Service providers listened carefully to what I had to say15. Service providers have been sympathetic to me

concerning any problems with a product or service16. The hotel staff knew my name and/or nationality17. The employees had clean, neat uniforms18. The hotel made me feel like an important person19. Service providers showed a genuine concern for my well

being

292

20. The hotel offered me the opportunity to co-construct my experience

21. The hotel atmosphere was inviting22. The hotel provided a safe environment23. The hotel’s interior and exterior were well maintained24. The hotel was bright and well lit25. I was given a warm “goodbye” on checking out26. The hotel offers me individually customized services27. I received good attention at the front desk28. Service providers directly answered my questions29. My special requirements are understood while staying in

this hotel30. Service providers make me feel really special31. The hotel cares about customer events32. The service provider in charge of my account remembers

birthdays and anniversaries33. I was presented with an unexpected welcoming token or

gift34. Room service was prompt35. I got what I paid for

Section B: This section examines your response and action toward your preferred business

Please indicate your feeling toward each statement – using a scale of 1 to 7, where 1 = strongly disagree; 2 3 4 5 6 and 7 strongly agree.

Please choose your favoured answer by marking [√] once for each statement

Statements 1 2 3 4 5 6 71. I have put up with it when the service was not

delivered as expected2. When I have a useful idea on how to improve service,

I let the service provider know3. When I place an order in this hotel, I have faith in the

employee’s advice/suggestions.4. I am happy with the service I received5. The employee(s) in this hotel make(s) me very happy6. I always fill out the customer survey form7. I have developed a positive relationship with this hotel8. I have a passionate interest in the employee(s) in this

hotel9. I have taught other customers to use the service

correctly10. I have assisted other customers when they needed my

help11. When I feel depressed, the employee(s) provide(s) me

with comfort during the process of serving me in this

293

hotel.12. If I have or ned to dine alone, it is not awkward to eat

at this hotel because the employee(s) is/are friendly and sociable with me

13. At times when I stay in other hotels and have some trouble or difficulty, the employee(s) of this hotel come to mind

14. I suggest to friends and relatives that they do business with this hotel

15. I consider this hotel my first choice to stay in16. I would recommend this hotel to someone who seeks

my advice17. I have informed the hotel about the good service I

have received from individual employees.18. I say positive things about this hotel to other people19. Doing business with this hotel makes me feel good20. When I receive service from the employee(s) in this

hotel, I feel that I can trust him/her/them completely21. I have positive memories associated with this hotel22. I am willing to pay more for this hotel23. I want to help this hotel achieve its goals24. I care about the success of this hotel25. I would feel sorry if the employee(s) in this hotel quit

his/her/ their job(s).26. I have the desire to maintain my relationship with this

hotel27. If someone praised the employee(s) in this hotel, I

would feel pleased28. I am proud that I use the services of this hotel 29. I am willing to make a sacrifice to continue this

relationship

Section C: Socio-demographic Characteristics

Please choose your answer by marking [√] once for each statement

1 What is your Gender 1-Male 2. Female 2 What is your Nationality ……………….3 What is your marital

status?1. Married 2. Single 3. Other ………

4 What is your level of education

1. High school 2. University/College 3.Postgraduate 4.Other (specify)…………………

5 What is your age? ……………….

Thank you for your valuable time

294

Appendix H Correlation

Inter-Item Correlation Matrix ( B.L)

16 19 15 18 14 4 20 21

16.I would recommend this hotel to someone who seeks my advice

1.000.839 .790 .806 .779 .709 .765 .658

19.Doing business with this hotel makes me feel good .839 1.000.746 .846 .787 .768 .763 .664

15.I consider this hotel my first choice to stay in .790 .746 1.000.741 .738 .665 .684 .556

18.I say positive things about this hotel to other people .806 .846 .741 1.000.789 .744 .774 .627

14. I suggest to friends and relatives that they do business with this hotel

.779 .787 .738 .789 1.000.674 .747 .597

4.I am happy with the service I received .709 .768 .665 .744 .674 1.000.742 .624

20.When I receive service from the employee(s) in this hotel, I feel that I can trust him/her/them completely

.765 .763 .684 .774 .747 .742 1.000.573

21.I have positive memories associated with this hotel .658 .664 .556 .627 .597 .624 .573 1.000

Inter-Item Correlation Matrix ( E.A )

295

11 7 8 3 12

11. When I feel depressed, the employee(s) provide(s) me with comfort during the process of serving me in this hotel.

1.000.595 .631 .537 .578

7.I have developed a positive relationship with this hotel .595 1.000.714 .570 .503

8.I have a passionate interest in the employee(s) in this hotel .631 .714 1.000.508 .473

3. When I place an order in this hotel, I have faith in the employee’s advice/suggestions.

.537 .570 .508 1.000.534

12. If i have or need to dine alone, it is not awkward to eat at this hotel because the employee(s) is/are friendly and sociable with me

.578 .503 .473 .534 1.000

Inter-Item Correlation Matrix ( A.C )

27 26 24 25 23 22

27.If someone praised the employee(s) in this hotel, I would feel pleased

1.000.716 .691 .689 .680 .537

26.I have the desire to maintain my relationship with this hotel .716 1.000.702 .695 .594 .464

24.I care about the success of this hotel .691 .702 1.000.570 .745 .473

25. I would feel sorry if the employee(s) in this hotel quit his/her/ their job(s).

.689 .695 .570 1.000.606 .436

23.I want to help this hotel achieve its goals .680 .594 .745 .606 1.000.567

22.I am willing to pay more for this hotel .537 .464 .473 .436 .567 1.000

Inter-Item Correlation Matrix ( B CCB)

10 9 6

10.I have assisted other customers when they needed my help 1.000 .660 .502

9.I have taught other customers to use the service correctly .660 1.000 .544

6.I always fill out the customer survey form .502 .544 1.000

Inter-Item Correlation Matrix ( A.A )

24 22 23 21 10 17 3 1 9

296

24.The hotel was bright and well lit 1.000

.733 .750 .697 .645 .671 .586 .474 .430

22.The hotel provided a safe environment .733 1.000.721 .739 .604 .666 .569 .472 .463

23.The hotel’s interior and exterior were well maintained

.750 .721 1.000.676 .608 .641 .590 .465 .456

21.The hotel atmosphere was inviting .697 .739 .676 1.000.639 .643 .626 .575 .453

10.The front desk was visually appealing .645 .604 .608 .639 1.000.607 .620 .455 .522

17.The employees had clean, neat uniforms .671 .666 .641 .643 .607 1.000.581 .478 .493

3.Employees were willing to answer my questions .586 .569 .590 .626 .620 .581 1.000.433 .592

1.The outdoor surroundings were visually attractive

.474 .472 .465 .575 .455 .478 .433 1.000.315

9.Charges on my account were clearly explained .430 .463 .456 .453 .522 .493 .592 .315 1.000

Inter-Item Correlation Matrix (C.E )

15 14 16

15.Service providers have been sympathetic to me concerning any problems with a product or service

1.000.743 .480

14.Service providers listened carefully to what I had to say .743 1.000.441

16.The hotel staff knew my name and/or nationality .480 .441 1.000

Inter-Item Correlation Matrix ( P. V.C )

30 20 26 18 19 25 35 29

30. Service providers make me feel really special 1.000.707 .668 .720 .723 .646 .637 .634

20.The hotel offered me the opportunity to co-construct my experience

.707 1.000.646 .607 .685 .658 .587 .569

26.The hotel offers me individually customized services .668 .646 1.000.572 .620 .654 .632 .563

18.The hotel made me feel like an important person .720 .607 .572 1.000.772 .631 .631 .574

19.Service providers showed a genuine concern for my well being

.723 .685 .620 .772 1.000.634 .650 .637

25.I was given a warm “goodbye” on checking out .646 .658 .654 .631 .634 1.000.609 .548

35.I got what I paid for .637 .587 .632 .631 .650 .609 1.000.592

297

29. My special requirements were understood while staying in this hotel

.634 .569 .563 .574 .637 .548 .592 1.000

Inter-Item Correlation Matrix ( R.A )

8 2 12 6 33 4 5 11

8.Service providers told me something personal about themselves

1.000.339 .417 .313 .349 .345 .341 .506

2.Service providers remember my preferences .339 1.000.564 .499 .442 .537 .519 .500

12.Feelings of affection have built between me and the receptionist after a few visits

.417 .564 1.000.449 .383 .559 .469 .560

6.This hotel offers special rewards for loyal customer .313 .499 .449 1.000.494 .421 .444 .476

33.I was presented with an unexpected welcoming token or gift

.349 .442 .383 .494 1.000.316 .425 .473

4.Service providers teased me in a friendly way .345 .537 .559 .421 .316 1.000.569 .415

5.Reservationists tried to find out my particular needs .341 .519 .469 .444 .425 .569 1.000.533

11.Service providers discussed my personal likes and dislikes

.506 .500 .560 .476 .473 .415 .533 1.000

Appendix I K-means cluster outputs

ANOVACluster Error

F Sig.Mean Square df Mean Square dfBehavioural Loyalty 137.111 2 .808 247 169.684 .000Emotional Attachment

201.886 2 .659 247 306.319 .000

Affective Commitment

203.176 2 .684 247 297.066 .000

Belonging CCB 217.615 2 1.020 247 213.444 .000

Iteration Historya

IterationChange in Cluster Centres

1 2 31 3.740 3.014 2.7382 1.265 .594 .9043 .609 .430 .0924 .138 .146 .1595 .047 .045 .0336 .000 .000 .000

298

a. Convergence achieved due to no or small change in cluster centres. The maximum absolute coordinate change for any centre is .000. The current iteration is 6. The minimum distance between initial centres is 7.439.

Appendix J Cluster Number of Case CrosstabulationGender

Gender * Cluster Number of Case CrosstabulationCluster Number of Case

Total1 2 3Gender

Male Count 73 88 47 208Adjusted Residual -.7 -.9 1.9

Female Count 17 21 4 42Adjusted Residual .7 .9 -1.9

Total Count 90 109 51 250

Chi-Square Tests

Value df

Asymptotic Significance

(2-sided)Pearson Chi-Square 3.682a 2 .159Likelihood Ratio 4.246 2 .120Linear-by-Linear Association

2.196 1 .138

N of Valid Cases 250a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 8.57.

Marital Status

marital status * Cluster Number of Case Cross tabulationCluster Number of Case

Total1 2 3 marital status Married Count 69 79 39 187

Adjusted Residual

.5 -.7 .3

Single Count 20 30 12 62Adjusted Residual

-.7 .9 -.2

Others Count 1 0 0 1Adjusted Residual

1.3 -.9 -.5

Total Count 90 109 51 250

299

Chi-Square Tests

Value df

Asymptotic Significance

(2-sided)Pearson Chi-Square 2.518a 4 .641Likelihood Ratio 2.782 4 .595Linear-by-Linear Association

.000 1 .998

N of Valid Cases 250a. 3 cells (33.3%) have expected count less than 5. The minimum expected count is .20.

Types of hotel

* Cluster Number of Case CrosstabulationCluster Number

of CaseTotal1 2 3

Please indicate the type of hotel? Please write the hotel name in one box

Independent Count 37 39 18 94Adjusted Residual

.9 -.5 -.4

Chain Count 53 70 33 156Adjusted Residual

-.9 .5 .4

Total Count 90 109 51 250

Chi-Square Tests

Value df

Asymptotic Significance

(2-sided)Pearson Chi-Square .742a 2 .690Likelihood Ratio .739 2 .691Linear-by-Linear Association

.592 1 .442

300

N of Valid Cases 250a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 19.18.

Education Level

Education * Cluster Number of Case CrosstabulationCluster Number of Case

Total1 2 3Education High school Count 2 3 4 9

Adjusted Residual

-.9 -.6 1.8

University/College Count 56 48 29 133Adjusted Residual

2.1 -2.6 .6

Postgraduate Count 30 56 17 103Adjusted Residual

-1.9 2.9 -1.3

Others Count 2 2 1 5Adjusted Residual

.2 -.2 .0

Total Count 90 109 51 250

Chi-Square TestsValue df Asymptotic Significance (2-sided)

Pearson Chi-Square 11.364a 6 .078Likelihood Ratio 10.791 6 .095Linear-by-Linear Association .013 1 .911N of Valid Cases 250a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is 1.02.

301

Length of Relationship

Chi-Square Tests

Value df

Asymptotic Significance

(2-sided)Pearson Chi-Square 6.432a 6 .377Likelihood Ratio 6.711 6 .348Linear-by-Linear Association

2.397 1 .122

N of Valid Cases 250a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 10.61.

Number of Visits

How many times have you stayed there? * Cluster Number of Case CrosstabulationCluster Number of

CaseTotal1 2 3

302

* Cluster Number of Case CrosstabulationCluster Number of

CaseTotal1 2 3

How long have you been using it?

Less than a year Count 31 31 22 84Adjusted Residual

.2 -1.5 1.6

One to Two years Count 16 24 12 52Adjusted Residual

-.9 .4 .5

Three to Five years

Count 18 27 10 55Adjusted Residual

-.6 .9 -.5

More than Five Years

Count 25 27 7 59Adjusted Residual

1.2 .4 -1.9

Total Count 90 109 51 250

How many times have you stayed there? 

One to Three times

Count 34 48 25 107Adjusted Residual

-1.2 .3 1.0

Four to six times

Count 23 30 14 67Adjusted Residual

-.3 .2 .1

More than six times

Count 33 31 12 76Adjusted Residual

1.6 -.6 -1.2

Total Count 90 109 51 250

Chi-Square Tests

Value df

Asymptotic Significance

(2-sided)Pearson Chi-Square 3.204a 4 .524Likelihood Ratio 3.203 4 .524Linear-by-Linear Association

2.920 1 .087

N of Valid Cases 250a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 13.67.

303