Abstract

Research on consumer satisfaction with green hotels has yielded mixed results; some studies have shown a positive relationship with CSR initiatives and others have shown a negative relationship. To reconcile these two opposing views, we examine the mediating effects of perceived warmth and competence as potential psychological mechanisms explaining consumers’ reactions to green hotels. We also investigate the moderating role of firm motives in influencing consumers’ reactions to green initiatives. Results from Study 1 indicate that when service delivery is successful, consumer satisfaction is higher for green (vs. non-green) hotels. However, the advantage for green hotels disappears when guests experience service failures. Results from Study 2 show that consumer satisfaction with green hotels is enhanced when a firm engages in green initiatives for public-serving (vs. self-serving) motives. Overall, the results show that perceived warmth and competence mediate the relationship between service outcomes and consumer satisfaction and behavioral intentions.

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