An Exploration of Consumer Complaint Behavior towards the Hotel Industry: Case Study in Macao

Grace Suk Ha Chan,Aiko Hoi Kei Sou,Irini Lai Fun Tang

doi:10.5539/ijms.v9n5p56

Abstract

Macao has experienced positively exponential growth with the liberalization of the gaming industry in 2002. This profit-generating territory has attracted many international chain companies, such as Las Vegas Sands Corporation, Wynn Resorts Limited, MGM Resorts International, and Starwood Hotels and Resorts Worldwide, LLC, to establish their businesses in Macao. However, Macao is currently experiencing its worst downturn since 2002. Hotel operators should strive to continuously improving the services that they offer to survive the keen competitive environment. These operators should acquire feedback by encouraging and facilitating the complaint process to improve service quality and meet customer expectations. When customers encounter service failure, they engage in different coping strategies such as inertia, negative word-of-mouth, third party complaint, and voice (Kim, 2010). This study aims to explore the complaint behavior of customers toward the hotel industry in Macao. A qualitative approach is adopted with a sample of 30 respondents who have stayed in Macao hotels. Semi-structured questions are asked through in-depth interviews. The reasons for the complaints and complaint behavior of the customers have been identified, and recommendations are given based on the results of the analysis to provide insights for industry practitioners.

Highlights

1.1 BackgroundMacao, which is officially known as the Macao Special Administrative Region (SAR) of the People’s Republic of China, is a special administrative region of Mainland China
The findings of many scholars have been found consistent, where unhappy customers frequently voice their displeasure in the form of negative word of mouth (WOM) to other current and potential customers (Voorhees et al, 2006), most of the respondents in the present study have indicated that they will demonstrate their anger regarding the incident by sharing the experience with their family and friends
The most common coping strategy, among all those specified in the study, is to spread negative WOM

Summary

Introduction

1.1 BackgroundMacao, which is officially known as the Macao Special Administrative Region (SAR) of the People’s Republic of China, is a special administrative region of Mainland China. The policy of “one country, two systems” states that the State Council of the People’s Republic of China is responsible for military defense and foreign affairs, whereas Macao maintains its own legal system, the public security force, monetary system, customs policy, and immigration policy. The political and economic systems of China would not be imposed on Macao, which would enjoy a “high degree of autonomy” in all matters, except for foreign affairs and defense, for the subsequent 50 years (MGTO, 2016). After the turnover of Macao, the service sector expanded rapidly and the SAR government set a clear policy direction whereby tourism, gaming, conventions, and exhibitions comprised the “head” and the service industry was the “body;” these sectors would be responsible for driving the overall development of other industries (Gaming Inspection and Coordination Bureau, 2016)

Objectives

Findings

Discussion

Conclusion