The use of customer-centric philosophy in hotels to improve customer loyalty

Abstract

Purpose

The purpose of this paper is to study the impact the quality of online and multi-channel offers have on perceived value. It is also analyzed whether customer-centric management will ensure a greater perceived value and loyalty of the customer for the hotel. The authors analyze its relationship with customer satisfaction, perceived value and switching costs related to hotels with customer-centric management.

Design/methodology/approach

The sample of the paper are hotel users with Internet access. The authors have obtained 420 valid questionnaires through personal interviews. The statistical methodology used is the causal analysis, using structural equation models.

Findings

The empirical results of this paper indicate that by improving the online quality offered by hotels with a personalized online service and an increased efficiency of the service, reducing information asymmetries, search and transaction time and bargaining costs, building loyalty by customization and innovation, the customer perceives more value in the service provided by hotels.

Originality/value

It is analyzed empirically how the customer-centric philosophy, a key philosophy for the hotel sector, allows an effective differentiation, greater customer loyalty and, therefore, an increased profitability of the company.

Citation

Palacios-Marques, D., Guijarro, M. and Carrilero, A. (2016), "The use of customer-centric philosophy in hotels to improve customer loyalty", Journal of Business & Industrial Marketing, Vol. 31 No. 3, pp. 339-348. https://doi.org/10.1108/JBIM-05-2013-0110