Abstract

As guesthouse operators normally possess relatively limited resources and budgets, it is critical for them to evaluate innovations before implementation. This research note integrates the merits of the structure of Decomposed Theory of Planned Behavior (DTPB), choice experiment, and latent class model to evaluate potential service innovations. Seven DTPB-based attributes with various levels of service are explored through a stated-preference experiment. Four hundred and forty-six interviews are conducted and the results show that behavioral heterogeneity is confirmed toward innovations and three-segmented groups can be further identified using gender and income status. Guests in Segment 1 regard guesthouse reputation as an endorsement to influence their stay intentions. Guests in Segment 2 appreciate the connections with guesthouses through interior decorations and cultural activities. Guests in Segment 3 value not only stay experiences but also care service details. This study extends the power of DTPB and provides a guidance for guesthouse operators to prioritize innovations regarding targeted guests.

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