Contributions

Satisfying the four research objectives of this study makes several contributions to the theoretical understanding of the motel industry.

6.7.1 Theoretical Implications

The results of this study add support to the use of a hierarchical factor structure to conceptualise and measure service quality, such as those developed by Dagger et al. (2007), Clemes et al. (2007), Brady and Cronin (2001), and Dabholkar et al. (1996).

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However, the three service quality primary dimensions and pertaining sub-dimensions identified in this study may not be generic for all the motels service industries and for different cultures. In particular, the sub-dimensions need to be tested in specific motel service settings following suggestions by Brady and Cronin (2001) and Carman (1990). The study provides a theoretical framework for understanding the effects of the three primary dimensions of service quality on several constructs including Satisfaction, Value (price) and Behavioural Intentions. The results of this study identified Service Quality as having the most influential effect on Satisfaction in the motel industry and the results also illustrate that Customer Satisfaction has a direct and significant impact on Behavioural Intentions. Moreover, Value (price) was empirically tested as a moderator variable between Service Quality and Customer Satisfaction. The significant result for Value (price) shows that Value (price) has a moderating effect on the relationship between Service Quality and Customer Satisfaction.

6.7.2 Managerial Implications

Resourcing the customer-important sub-dimensions will improve a motel’s competitive positioning in the marketplace. The results of this study also provide an opportunity for motel management to use the information to increase favourable behavioural intentions, which will in turn, help to increase motel occupancy rates.

In relation to Research Objective One, the results of this study identified three primary dimensions of motel service quality and ten sub-dimensions pertaining to the primary dimensions. Moteliers can use the hierarchical model developed in this research in the strategic planning process as the model provides a framework for evaluating motel customers’ perceptions of service quality and the higher order constructs. For example, motel managers of boutique motels can use the information in this study to increase favourable behavioural intentions, which will in turn, help to increase motel occupancy rates. However, as the dimensions of service quality vary across industries and cultures, moteliers should note that the primary and sub-dimensional structures must be developed for their own specific situation and cultural setting to accurately measure motel customers’ perceptions of their motel experience.

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In relation to Research Objective 2, the results of this research also provide moteliers with a better understanding of the effect that service quality and value (price) have on customer satisfaction and favourable future behavioural intentions. The results in this study show that improving motel customers’ perceptions of service quality should effectively enhance a motel customer’s level of satisfaction, and a higher level of satisfaction should ultimately lead to favourable behavioural intentions. In this vein, motel management should always invest effort into providing consistently good services to satisfy customers.

Moteliers should also carefully analyse their pricing strategy by understanding that value (price) mediates the relationship between service quality and customer satisfaction. Moteliers should be able to more accurately establish the trade-offs between higher/lower prices and higher/lower levels of service quality and the impact of these trade-offs on customer satisfaction.

In relation to Research Objective 3, the results of this study indicate that Outcome Quality is the most important dimension in a motel stay, followed by Physical Environment Quality, and then Interaction Quality. This finding suggests that motel management participating in this study may want to concentrate on Outcome Quality, followed by Physical Environment Quality, and then focus on Interaction Quality. The moteliers should note that the order of importance of the primary dimensions may vary for different geographic regions and for different cultures. However, the importance of the three primary dimensions still provides a good clue for moteliers to strategically allocate resources in order to achieve management efficiency.

Moteliers should concentrate on the sub-dimensions identified in this study, which are based on the empirical findings, since the empirical analysis provide more diagnostic value for the understanding of service quality, customer satisfaction, behavioural intentions, and the moderating effect of value. Moteliers may be able to improve overall service performance and achieve a higher level of overall customer satisfaction, and ultimately encourage favourable behavioural intentions more effectively and efficiently using this strategy.

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In relation to Research Objective 4, the results (see discussion in Section 5.5.5) indicate that there are cultural differences between Oceania and International motel customers. Moteliers should be aware of the significant perceptual differences between Oceania and International customers. Moteliers may consider if it is more profitable to adjust their service strategy to cater more for International motel customers, especially Asian tourists who are predicted to increase in numbers during the next decade. For example, the moteliers may consider hiring Asian staff to improve communication with Asian customers in order to foster a better understanding of Asian customers’ needs and wants.