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Article
Publication date: 12 February 2018

Dina Marie V. Zemke, Carola Raab and Kaiyang Wu

The purpose of this paper is to test the relationships between a hotel’s design quality and the property’s business performance.

Abstract

Purpose

The purpose of this paper is to test the relationships between a hotel’s design quality and the property’s business performance.

Design/methodology/approach

Hotel guests’ assessments of the design quality of hotels that they recently visited are tested using the design quality indicator (DQI). Business performance is measured using indexed values for each property’s occupancy, average daily rate (ADR) and revenue per available room (RevPAR). The data are analyzed using exploratory factor analysis and a variation of a hedonic pricing model.

Findings

Factor analysis reduced the DQI instrument to 19 measurement items. Factors that measure navigability and signage positively impact occupancy index. Factors that measure flexible space usage negatively impact the RevPAR and ADR indices. Factors that reflect aesthetic constructs, including Urban & Social Integration and Character & Form, positively impact the RevPAR and ADR indices.

Research limitations/implications

The study examines a nationwide sample of guests from two full-service brands of a single multi-brand hotel company. The study provides a parsimonious, validated design measurement instrument and a revised hedonic pricing analysis.

Practical implications

Hoteliers can use this technique to assist with resource allocation decisions. Aesthetic elements, including the building’s Urban & Social Integration with its surroundings and its Character & Form, lead to higher ADR and RevPAR performance. Managers should ensure a coherent layout and good signage program to drive occupancy.

Originality/value

This study offers a technique to measure design quality and a new method of performing a hedonic pricing analysis.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 2
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 2 October 2017

Jungsun (Sunny) Kim, Sungsik Yoon and Dina Marie V. Zemke

The purpose of this study is to investigate the determinants of customers’ intentions to use location-based services (LBS) offered by a hotel. The study examined whether…

Abstract

Purpose

The purpose of this study is to investigate the determinants of customers’ intentions to use location-based services (LBS) offered by a hotel. The study examined whether hotel customers’ coupon proneness, trust, privacy concerns and familiarity with LBS are significant determinants of their intentions to use LBS.

Design/methodology/approach

An online survey using a scenario-based narrative was administered to collect data from participants who have smartphones and have stayed at a full-service hotel within the previous 12 months. A research model tested data collected from 402 hotel customers, using confirmatory factor analysis and structural equation modeling.

Findings

Three proposed determinants (i.e. familiarity, coupon proneness and trust) positively influenced customers’ intentions to use LBS. Out of the four dimensions of privacy concerns (concerns of collection, error, unauthorized secondary use and improper access), only concerns about data collection negatively influenced customers’ intentions to use a hotel’s LBS.

Originality/value

This study extends the literature on LBS adoption and other technology with privacy issues by modifying existing models and empirically testing it in the new context of hotels.

Details

Journal of Hospitality and Tourism Technology, vol. 8 no. 3
Type: Research Article
ISSN: 1757-9880

Keywords

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Article
Publication date: 11 May 2015

Dina Marie V. Zemke, Jay Neal, Stowe Shoemaker and Katie Kirsch

This study aims to propose that there may be a marketable segment of guests who are willing to pay a premium for guestrooms that are cleaned using enhanced disinfection…

Abstract

Purpose

This study aims to propose that there may be a marketable segment of guests who are willing to pay a premium for guestrooms that are cleaned using enhanced disinfection techniques beyond the normal room cleaning procedures. Room cleanliness is important to hotel guests. Some hotel brands currently offer allergy-free rooms, charging a premium for this service. However, no hotel brands currently serve the market that is willing to pay more for enhanced disinfection. This exploratory study investigates whether there is such a segment and, if so, what price premium these customers are willing to pay for enhanced disinfection.

Design/methodology/approach

Survey methods were used to determine the consumer’s perceptions of hotel guestroom cleanliness; the effectiveness of traditional and enhanced cleaning methods; and willingness to pay for enhanced guestroom disinfection.

Findings

Younger travelers and female travelers of all ages may be willing to pay a significant price premium for enhanced disinfection of a hotel guestroom.

Research limitations/implications

The survey instrument was administered via the Internet, limiting the sample. The study participants were not asked about hotel brand; thus, the results could not be analyzed by brand or service level.

Originality/value

Past research focuses only on traditional cleaning methods. This article provides a template for the hotel industry to explore the feasibility of offering enhanced cleanliness as a revenue-generating amenity.

Details

International Journal of Contemporary Hospitality Management, vol. 27 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

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Article
Publication date: 1 February 2013

Sandy C. Chen, Stowe Shoemaker and Dina Marie V. Zemke

Slot machines and other machine gaming generate between 65 percent and 90 percent of a US casino's revenue. This article aims to examine the motivations, behaviors, and…

Abstract

Purpose

Slot machines and other machine gaming generate between 65 percent and 90 percent of a US casino's revenue. This article aims to examine the motivations, behaviors, and preferences of slot machine customers, and to develop market segments.

Design/methodology/approach

The study's objectives include: understanding the demographic, gambling motivation, and gambling behavioral characteristics of slot machine players; identifying important reasons for choosing one slot machine game over another; examining player attitudes and behaviors pertaining to progressive machines; and investigating player desire for theme‐based games. This was accomplished through an online survey of slot machine players.

Findings

Profiles of slot machine players are developed and the slot players are segmented into four clusters that explain motivations and game preferences.

Practical implications

This article fills in some of the gaps in understanding the gambling behavior of slot players. This study can help gaming machine manufacturers design new products and features to serve existing machine gaming customers and to attract new customers. Casino and other gaming operators can use this information not only to select the right types of machines to provide on‐site, but also to develop advertising and promotions to attract and retain new and existing customers for slot machines and other types of gaming machines.

Originality/value

This is the first published study that segments slot machine players from a marketing perspective and identifies their preferences, behaviors, and demographic groupings.

Details

International Journal of Contemporary Hospitality Management, vol. 25 no. 1
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 11 September 2018

Dina Marie Zemke, Yun Ying Zhong and Carola Raab

Firms that serve customers in the service environment rely on a well-designed servicescape. This is particularly true in the hotel industry, where the hotel’s design is an…

Abstract

Purpose

Firms that serve customers in the service environment rely on a well-designed servicescape. This is particularly true in the hotel industry, where the hotel’s design is an important part of the product mix. However, despite design’s importance, there is no common instrument available to measure hotel design quality. The purpose of this paper is to present a quantitative method, the Design Quality Indicator, to measure guests’ evaluations of hotel design quality.

Design/methodology/approach

Nearly 5,000 guests of two full-service hotel brands were surveyed soon after a hotel stay (within two weeks of check-out). The DQI’s factor structure is tested using principle components analysis and confirmatory factor analysis to improve the reliability, validity and parsimony of the instrument.

Findings

The study yields a DQI instrument that is reduced from 92 to 41 measurement items, with good reliability and validity, enabling more efficient data collection and analysis.

Research limitations/implications

This study only examines guests’ assessments of two full-service hotel brands. The instrument can be used to explore design’s relationship with numerous outcome variables, such as satisfaction, loyalty, and repatronage intentions, as well as property performance outcomes.

Practical implications

The methods demonstrated can be used by hotel owners and operators to inform resource allocation decisions, particularly when planning for renovations.

Originality/value

This study provides a reliable, validated quantitative assessment of hotel design quality. It is also one of the few studies that elicits feedback about a guest’s actual hotel stay, rather than a hypothesized or simulated stay.

Details

Property Management, vol. 37 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

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Case study
Publication date: 23 June 2016

Mohanbir Sawhney, Pallavi Goodman and Ori Broit

In 2014 WMS Gaming, a manufacturer and seller of slot machines to casinos, was considering a redesign of its existing revenue model. As technology evolved and customer…

Abstract

In 2014 WMS Gaming, a manufacturer and seller of slot machines to casinos, was considering a redesign of its existing revenue model. As technology evolved and customer demand for gaming solutions intensified, new and innovative revenue models were being adopted in other technology markets. Most notably, the subscription revenue model, in which customers paid a monthly subscription fee rather than a large upfront fee, was becoming widely adopted in the software industry. Product manager Dayna Stone had the task of evaluating several revenue models and recommending one that most suited WMS's business needs and at the same time took customer needs and wishes into consideration. Complicating this decision were several factors that would have to be kept in mind. Americans' love of gaming had led to a mushrooming of casinos, which meant increased competition for casino dollars. Yet the financial crisis of 2008 and its aftermath had weakened demand for casinos. In addition, casinos, depending on the type of customers they attracted, differed in their appetite for innovation and maintenance of their slot machines. Students will step into the shoes of Dayna Stone as she undertakes the task of weighing these factors and selecting the right revenue model.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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