Service Innovation and Price Fairness toward Consumer Decision Making on Hotel Industry in Bandung City
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Date
2015-09-28
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Abstract
xvii+233 pages; 3 graphs; 45 tables; 67 figures; 7 appendices; 2015.
In the middle of very tight competition in hotel industry, managers of hotel are required to make innovation to maintain or improve its market position. Besides the service side that coming from innovation, hotel manager should also understand the cost side from customer perspective, which is fairness of the price, in order to maintain the existing customers and attract new potential consumers. The evaluation of service side and the cost side in the process of decision making by consumers is also important to be understood by the hotel managers, in order to get better comprehension in developing effective marketing strategy. The aim of this study is to know the implementation of service innovation, price fairness, and consumer decision, as well as to know the influence of service innovation toward consumer decision making, price fairness toward consumer decision making, and both service innovation and price fairness toward consumer decision making. 300 questionnaires are collected from hotel guest in six stratums (5-star, 4-star, 3-star, 2-star, 1-star, and non-star). The data is processed with Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM). The results show that service innovation, price fairness, and consumer decision making are already implemented in hotel industry in Bandung City. Besides that, this study provide result that there is significantly positive effect of service innovation on consumer decision making, as well as significantly positive effect of price fairness on consumer decision making. Furthermore, both of independent variables have simultaneously significant positive effect on consumer decision making.
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Service Innovation, Price Fairness, Consumer Decision Making