The Effect of Market-Oriented and Brand-Oriented Service Improvement on Hotel Performance

Abstract

This study tests a holistic model covering the antecedents and consequences of service improvement within the context of the hospitality industry. Market orientation and brand orientation are considered among the antecedents of service improvement. Consequences of service improvement, on the other hand, are the sub-dimensions of hotel performance. Data were collected from 121 hotel managers via online questionnaire technique. The research model was tested with PLS-SEM method. Findings related to the direct effect hypotheses show that customer orientation has positive effects on brand orientation and service improvement. While competitor orientation affects brand orientation positively, it does not have a direct effect on service improvement. There is a positive relationship between brand orientation and service improvement. Service improvement enhances the customer performance of a hospitality enterprise while not having a direct effect on the economic performance of the enterprise. On the other hand, customer performance of a hotel increases the economic performance and economic performance enhances its financial performance. Hypotheses concerning the indirect effect indicate that competitor orientation affects service improvement behavior through brand orientation. Similarly, service improvement and economic performance relationship is mediated by customer performance, and customer orientation and economic performance relationship by brand orientation.