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Journal of Hospitality Marketing & Management

ISSN: 1936-8623 (Print) 1936-8631 (Online) Journal homepage: https://www.tandfonline.com/loi/whmm20

Examining the key dimensions of customer


experience quality in the hotel industry

Ibrahim Alnawas & Jane Hemsley-Brown

To cite this article: Ibrahim Alnawas & Jane Hemsley-Brown (2019): Examining the key
dimensions of customer experience quality in the hotel industry, Journal of Hospitality Marketing &
Management, DOI: 10.1080/19368623.2019.1568339

To link to this article: https://doi.org/10.1080/19368623.2019.1568339

Published online: 18 Feb 2019.

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JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT
https://doi.org/10.1080/19368623.2019.1568339

Examining the key dimensions of customer experience quality


in the hotel industry
a b
Ibrahim Alnawas and Jane Hemsley-Brown
a
Qatar University; bUniversity of Surrey

ABSTRACT KEYWORDS
Prior research examining the concept of customer experience quality Experience quality; hotel
(CEQ) is inconclusive and incoherent regarding the number and the industry
nature of experiences in the context of the hotel industry. Some
studies conceptualise CEQ based on the sensations created by and
the knowledge acquired from specific encounters, while others con-
ceptualise it based on interaction with physical and social environ-
ments. Therefore, the key objective of this paper is to theoretically
identify and empirically test the key dimensions of CEQ in the hotel
industry through combining the major perspectives of CEQ. An
online survey was used to collect the required data from 420 custo-
mers. A structural equation model (AMOS 18) was used to analyse the
data. Three findings emerge from the current study. First: this study
provides sound empirical support for CEQ as a high-order construct
that is comprised of seven first-order factors. Second, the current
research suggests that the measurement instrument for CEQ, which
consists of 33 items, is a valid and reliable using the following factors:
emotional-related experiences; staff-customer interaction, customer-
customer interaction; learning; lifestyle; guest security; and atmo-
spherics. Third, the proposed measurement instrument of CEQ
strongly predicts customer satisfaction, perceived value and brand
loyalty. The key contribution of this study stems from developing and
validating a 33-item scale that synthesises and integrates the major
perspectives of CEQ.

摘要
先前的研究检验了顾客体验质量(CEQ)的概念,对于酒店业背景
下的体验数量和性质是不确定和不连贯的.一些研究基于特定遭遇产
生的感觉和获得的知识来概念化客户体验质量,而另一些研究基于
与物理和社会环境的互动来概念化客户体验质量.因此,本文的主要
目的是结合顾客体验质量的主要观点,从理论上对酒店业顾客体验
质量的关键维度进行识别和实证检验.一项在线调查被用来从420个
客户那里收集所需的数据.利用结构方程模型(AMOS 18)对数据进
行了分析.目前的研究有三个发现.第一:本研究为七个一阶因子构
成的高阶结构的顾客体验质量提供了可靠的实证支持.第二,目前的
研究表明,由33项组成的顾客体验质量测量仪是一种有效、可靠的
测量工具,它利用了以下因素:情感相关体验、员工与顾客的互
动、顾客与顾客的互动、学习、生活方式、顾客安全和氛围.第三,
提出的顾客体验质量测量工具对顾客满意度、感知价值和品牌忠诚
度有很强的预测作用.本研究的主要贡献来自开发和验证一个综合并
整合客户体验质量主要观点的33项量表.

CONTACT Ibrahim Alnawas ialnawas@qu.edu.qa Qatar University


Color versions of one or more of the figures in the article can be found online at www.tandfonline.com/whmm.
© 2019 Taylor & Francis Group, LLC
2 I. ALNAWAS AND J. HEMSLEY-BROWN

Introduction
The marketing paradigm has changed dramatically over the last three decades. As such, the
focus of marketing practices has shifted from creating and selling fast moving consumer
goods (i.e. product marketing), to developing customer relationships through service mar-
keting (i.e. service-based relationship marketing), and more recently to crafting holistic
customer experiences (Maklan & Klaus, 2011). Accordingly, in the service sector in parti-
cular, the focus has moved from service quality (SQ) to customer experience quality (CEQ).
The former focuses on a transaction-specific assessment (Voss, Roth, & Chase, 2008) and
concert cues, which are more technical in nature than experiential (Parasuraman, Zeithaml,
& Malhorta, 2005), emphasises primarily the cognitive aspects in the service provider-
customer relationship (Chang and Horng, 2010), assumes that quality arises from delivering
the promised embedded-value in a product/service at the moment of exchange (Lemke,
Clark, & Wilson, 2011), and assesses services against expectations (Cronin & Taylor, 1992).
On the other hand, CEQ is subjectively evaluated (Chang and Horng, 2010), focuses on both
cognitive and emotional elements in the service provider-customer relationship (Klaus &
Maklan, 2012), takes into account peer-to-peer interaction (Ali, Amin, & Cobanoglu, 2016),
stresses value-in-use sought by customers’ deeper needs – i.e. value created by customers in
use, not just the attributes of product and service delivery (Lemke et al., 2011) – takes place
before and after the service encounter(s) (Klaus and Maklan, 2007), considers both direct
and indirect encounters with a firm (Kim & Choi, 2013), and is created by elements which
service providers can control as well as elements outside their control (e.g. influence of
others, purpose of shopping) (Verhoef et al., 2009).
In the hotel industry, the services provided are hedonic in nature and the outcome of
consuming such services is mainly psychological (Hemmington, 2007; Walls, Okumus, &
Wang, 2011a). Such characteristics lead the sector to be among the experience-intensive
services (Yoon & Lee, 2017). As customers are highly involved in hotel services (Wall
et al., 2011c), this makes examining the concept of CEQ in the hotel industry of both
theoretical and managerial importance. To further enhance our understanding of the
topic, a growing number of researchers have devoted their efforts towards examining
the concept of CEQ in various service industries in general (Brakus, Schmitt, &
Zarantonello, 2009; Chang and Horng, 2010; Choi, Wilson, & Fowler, 2013; Kim &
Choi, 2013; Srivastava & Kaul, 2016), and in the hospitality and tourism industry, in
particular (see Table 1). Although previous studies in the context of hospitality and
tourism have been instrumental in advancing our understanding of the different aspects
of CEQ, more research is required for the following two reasons.
First, some of the previous studies were either conceptual (Adhikari & Bhattacharya,
2016; Tung & Ritchie, 2011; Walls et al., 2011a; Walls, Okumus, Wang, Joon, & Kwun,
2011b) or qualitative (Huang, Liu, & Hsu, 2014; Klaus & Maklan, 2013; Lindberg &
Østergaard, 2015; Stein & Ramaseshan, 2016; Walls et al., 2011c), justifying the need for
further research in order to clarify and verify issues related to the nature and the
components of the CEQ, particularly in a hospitality and tourism setting. Second, some
studies focus primarily on emotions and sensations created by experiences and knowledge
acquired from specific encounters (e.g. Chang & Lin, 2015; Hosany and Gilbert, 2010; Jin,
Lee, & Lee, 2015; Kao, Huang, & Wu, 2008), and ignore issues related to interaction with
staff and other customers, and direct and indirect contact with the service providers. On
Table 1. Studies focusing on CEQ.
Hospitality
and Tourism
Authors Theoretical Foundation Sector Dimensions of CEQ Consequences Notes
Ali et al. Drawing on the work of Wu and Theme parks Physical environment, Interaction with Customer delight, Focused exclusively on the interaction with
(2016) Liang (2009) and Jani and Han (2013) staff, Interaction with customer Satisfaction, physical and social environments.
Loyalty
Fernandes Reviewing different research streams Wine tourism Environment, Service providers, Learning, Satisfaction, Little attention is paid to emotional side of CEQ.
and Cruz of CEQ Entertainment, Functional benefits, Trust Loyalty, Advocacy
(2016)
Ren et al. Reviewing different research streams Budget Tangible-sensorial experience, Staff- None Focused mainly on the interaction with physical
(2016) of CEQ and in depth interviews hotels interactional experience, Aesthetic and social environments.
perception, Location
Tung and Qualitative study to understand - Affect, Expectations, Consequentiality - Focused exclusively on emotional side of CEQ.
Ritchie “tourism experience” Recollection
(2011)
Manthiou The conceptualization of Brakus et al. Hotels Sensory, Affective, Behavioral, Intellectual. Brand loyalty Adopted a sensory engagement perspective, and
et al. (2009) thus, proposed broad, rather than specific
(2016) experiences
Cole and Pine and Gilmore’ (1999) Zoos Entertainment, Education, Community Performance
Scott conceptualization quality,
(2004) Satisfaction, Revisit
intention
Yang, Liu, Drawing mainly on the work of Tourism Advertising, Word of mouth, Service Customer-based Adopted a very narrow perspective by focusing
and Li Biedenbach, and Marell (2010) destination performance brand equity primarily on customer indirect interactions with
(2015) the service provider.
Hemmington Conceptual paper Focused on Host–guest relationship, Generosity, - Focused on the concept of interaction and
(2007) hotels, Theatre and performance, Lots of little utilitarian values.
restaurants, surprises, Security of No mentioning to emotions/sensations created by
and theaters strangers experiences
McIntosh and In-depth interviews Boutique Unique character, Personalized, Homely, – No mentioning to interaction with staff/
Siggs hotel/ Quality, Value added. customers; or emotions generated by the
(2005) hospitality experience itself
Walls (2013) Reviewing different research streams Hotels Physical environment (design, property Emotive/cognitive Focused exclusively on the interaction with
of CEQ upkeep, ambience). value physical and social environments.
Human interaction (caring,
professionalism, guest-to-guest, reliability)
Kim et al. Reviewing different research streams Hotels Hedonism, Novelty, Local culture, None Focused primarily on the emotional and cognitive
(2012) of CEQ Refreshment, Meaningfulness, side of CEQ.
Involvement, Knowledge
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT

Huang et al. Mystery shopping Budget Location, Online booking, Pricing, Check- None Appeared to measure SQ, rather than CEQ
(2014) hotels in/out services, Staff attitude, Room
design and facilities, Supporting service
3

features and facilities


(Continued )
4

Table 1. (Continued).
Hospitality
and Tourism
Authors Theoretical Foundation Sector Dimensions of CEQ Consequences Notes
Ali and Omar Reviewing different research streams Resort hotels Physical environment, Interaction with Satisfaction, Revisit Focused exclusively on the interaction with
(2014) of CEQ staff, Interaction with other customers intentions physical and social environments.
Ismail (2011) Reviewing different research streams Resort hotels Advertising, Price, Employees, Brand loyalty No mentioning to interaction with other
of CEQ; Qualitative study Servicescape, Core service, Word of customers; and very little emphasis on emotions
mouth, Mood generated by the experience itself
Su (2011) Schmitt’ (1999) conceptualization Restaurants Act, Think, Relate, Feel, Sense Behavioral Adopted a sensory engagement perspective, and
intention thus, proposed broad, rather than specific
experiences.
Chang and Pine and And Gilmore (1999) Creative life Entertainment, Education, Escapism, Subjective norms, Focused exclusively on the emotional side of CEQ
Lin (2015) conceptualization industry Esthetics Experience process and the knowledge gained from specific
clues, Experiential encounters. No mentioning to the interaction with
values physical and social environments.
I. ALNAWAS AND J. HEMSLEY-BROWN

Klaus and In-depth interviews Sports Hedonic pleasure, Personal progression, None More emphasis on emotional elements
Maklan tourism Social interaction, Efficiency, Surreal
(2011) feeling.
Oh et al. Pine and And Gilmore (1999) Bed and Entertainment, Education, Escapism, and Memory, Perceived see Chang and Lin’ (2015) comments.
(2007) conceptualization breakfast Esthetics quality, Satisfaction
lodging
Kao et al. Drawing on the work of Theme parks Surprise, Fun, Entertainment, Participation Satisfaction, Focus exclusively on emotional elements
(2008) Csikszentmihalyi (1975); Pine and Loyalty intention
Gilmore (1999); Hirschman and
Holbrook (1982); Schmitt (1999)
Chen (2015) Schmitt’ (1999) conceptualization Bed and Sensory experiences, Affective Customer value, Adopted a sensory engagement perspective, and
breakfast experiences, Creative experiences, Physical Customer voluntary thus, proposed broad, rather than specific
lodging experiences, Social identity experiences performance experiences.
Otto and Drawing on different streams of Hotels, Tours Hedonic, Involvement, Recognition, Peace - More emphasis on emotional elements. No
Ritchie literature of CEQ of mind mentioning to the interaction with physical and
(1996) social environments.
Jin et al. Kao et al’. (2008) conceptualization Water park Surprise, Fun, Entertainment, Participation Satisfaction, Focused exclusively on emotional elements
(2015) Perceived value,
Water par image,
Behavioral
intention
Hosany and Oh et al’. (2007) conceptualization Cruise Escapism, Esthetics, Entertainment, Perceived quality, see Chang and Lin (2015) comments.
Gilbert Vacation Education Satisfaction,
(2010) Intention to
recommend
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 5

other hand, some studies focus fundamentally on physical environment interaction, staff
interaction, and peer interaction (e.g. Ali et al., 2016; Huang et al., 2014; Ren, Qiu, Wang,
& Lin, 2016; Walls, 2013), and ignore emotions generated by particular experiences.
Therefore, these studies, which offer insightful and valuable contributions, tend to focus
on specific aspects of CEQ, and have not resulted in developing a balanced and compre-
hensive framework of CEQ. Such an issue indicates the importance of conducting further
research to synthesise and integrate those various experiences into a broader conceptua-
lisation to capture the comprehensive nature of CEQ, and to provide hotel managers with
more concrete evidence concerning the most important experiences thus extending guest
lifecycle.
The importance of providing a comprehensive conceptualisation of CEQ in the hotel
industry stems from the nature of the environment within which hotels operate.
Specifically, the hotel industry has grown rapidly, which has provided consumers with
a great variety of choices while simultaneously increasing the competition among hotel
brands (Kandampully & Suhartanto, 2003). This highly competitive and dynamic envir-
onment (Ali et al., 2016), coupled with the rapid expansion of budget airlines (Liat,
Mansori, & Huei, 2014), and the explosion of Internet technology and its online applica-
tions, have made consumers more discerning in selecting hotels, and have also decreased
their loyalty towards hotel brands (Zhang & Mao, 2012), thus affecting hotels’ brand
equity and value (Cai & Hobson, 2004). Further, hotel rooms are increasingly viewed by
customers as commodities (Zhang & Mao, 2012), and facilities such as bars and nightclubs
are increasingly considered as a necessity rather than a luxury (Liat et al., 2014).
To survive in such an environment, hotels are under tremendous pressure to identify
new mechanisms that could contribute to creating satisfied customers, building up
a strong loyal customer base, and developing superior customer value (Ali et al., 2016;
Gallarza, Arteaga, & Gil-Saura, 2015; Liat et al., 2014). Highly loyal customers and positive
evaluation of values perceived from a hotel’s experiences have been identified as funda-
mental factors in improving profitable business outcomes (Acheampong & Asamoah,
2013). In this vein, customer experience management is considered as a tool that has
the ability to transform customers’ experiences into something that has a substantial effect
on purchase decisions with further reaching impact on purchase motives than conven-
tional marketing (Yoon & Lee, 2017). As noted by Iglesias, Singh, and Batista-Foguet
(2011), the physical environment of hotels can be copied by other competitors, but
consumer experience cannot be easily reproduced, which makes the experience embody
the uniqueness of the hotel brand.
Therefore, the primary objective of this study is to offer a more comprehensive model
of CEQ and validate it through research conducted in the hotel industry. A secondary
objective is to examine the effect of CEQ on three post-consumption outcomes, namely,
customer satisfaction, perceived value and brand loyalty, in order to substantiate the
predictability and nomological validity of the proposed construct. The remainder of the
paper is organised as follows: the next section is a critical review of the relevant CEQ
literature, while the third section offers the framework of the current study. These sections
are followed by justification and explanation to validate the study’s model using rigorous
statistical techniques. The last section reports the results followed by conclusions, manage-
rial implications and directions for future research.
6 I. ALNAWAS AND J. HEMSLEY-BROWN

Literature review: customer experience quality


From a marketing perspective, an experience refers to “a personal occurrence, often with
important emotional significance, found on the interaction with stimuli which are the
products or services consumed” (Hirschman & Holbrook, 1982). Experience is strictly
personal, entails the customer’s involvement at different levels, i.e. rational, sensorial,
physical and emotional (Brakus et al., 2009), develops over time, relies heavily on
a consumption context, i.e. context-dependent (Klaus, 2013), develops from the interac-
tion between a staged event (like a theatrical play) and the customer’s state of mind (Pine
and Gilmore, 1999), and is more complex than architecture, design or groomed employees
(Walls, 2013). An experience influences customer internal factors (i.e. cognition and
emotion) before, and/or during and/or after a consumption experience (Lemke et al.,
2011), which leads the customer to form his/her own subjective reality (Adhikari &
Bhattacharya, 2016). Such a reality might be different from the objective reality depicted
by the product or service purchased. Accordingly, firms may use external factors such as
interacting with employees or physical surroundings to influence the senses of the
customer, seeking to influence the way the customer perceives the consumption experi-
ence (ibid). In hospitality and tourism settings, experiences may last just hours for a meal,
days for a hotel visit, or weeks for an extended holiday, indicating that experiences are not
delivered in one moment in time, but often take place over time, and in certain situations
they are revealed over an extended period of time (Hemmington, 2007).
Despite the numerous definitions of CEQ, they can be generally categorised into two
schools of thought. The first one views CEQ as customer internal and subjective response
to (i.e. affective, cognitive and behavioural) and assessment of all direct and indirect
contact with the service organisation, service surroundings and other customers (Ali
et al., 2016; Altunel and Erkut, 2015; Chang and Horng, 2010; Kim & Choi, 2013; Ren
et al., 2016; Walls, 2013). From this perspective, CEQ addresses pre- and post-service
encounter experiences, focuses on emotional and functional elements of quality, considers
customers’ social contexts, and includes an evaluation of value-in-use formed over multi-
ple channels, and differs with context. Despite the presence of emotion in the conceptua-
lisation of CEQ, research within this school of thought evaluates the quality of interaction
between the customer and physical environment and social environment, rather than the
emotions and sensations created by the experience. Additionally, this approach does not
view customer sensations created by particular encounters as potentially relevant experi-
ences, nor does it pay attention to the knowledge gained from having a specific experience
(see Table 1).
However, the alternative school of thought views CEQ as customers’ expectations from
sensory engagement with the focal activity, event, trip, product or service (Joy and Sherry,
2003; Pine & And Gilmore, 1999; Schmitt, 1999). More specifically, this approach regards
the sensations and emotions created by a specific encounter as an experience in itself, and
therefore, examines the psychological outcome accorded to customers who were involved
in specific encounters (e.g. Chang & Lin, 2015; Jin et al., 2015; Kao et al., 2008; Manthiou,
Kang, Sumarjan, & Tang, 2016; Oh, Fiore, & Jeoung, 2007; Otto & Ritchie, 1996; Su, 2011;
Tung & Ritchie, 2011). Those psychological outcomes lead the customer to perceive their
experiences as highly valuable compared with what they pay (Jin et al., 2015). From this
perspective CEQ has been defined as pleasant, engaging and unforgettable experiences
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 7

(Oh et al., 2007, p. 120), a bundle of sensory memorabilia (Pine & And Gilmore, 1999), an
experience that is “positively remembered and recalled after the event has occurred” (Kim,
Ritchie, & McCormick, 2012, p. 13), and takeaway impressions that customers have when
they encounter services and businesses (Berry, Carbone, & Haeckel, 2002). However, the
majority of studies in this category do not consider issues related to interaction with the
physical environment and the social environment, nor direct and indirect contact with
service providers (see Table 1).
Building upon the two schools of thought discussed above, and for the purpose of the
current research, CEQ is defined by the authors as:

Customer cognitive and emotional assessment of direct and indirect contacts with the service
organisation, physical environment and social environment, coupled with the psychological, sym-
bolic and cognitive outcomes accorded to the customer from specific encounters.

Conceptualising customer experience quality


Driven by the various streams of literature on the concept of CEQ, and the way that CEQ
is defined in the current paper, the authors identified nine experiences that could
potentially define CEQ in a tourism setting. Careful attention is given to the definitions
and the measurements of experiences offered by previous researchers in order to avoid
potential overlap, and to identify unique and distinctive experiences. Thus, the proposed
framework, validated at the next stage, is based on selected experiences common to the
literature review, related and germane to the hotel sector. Five of the identified experiences
are related to the psychological, symbolic and cognitive outcomes accorded to customers
from consumption activities (i.e. surprise, entertainment/fun, escapism/immersion, life-
style, learning); and the other four are related to the interaction with physical and social
environments (i.e. staff-customer interaction, customer-customer interaction, atmo-
spherics, guest security). Accordingly, the nine experiences the current research is based
on are as follows:
Atmospheric refers to how customers cognitively and emotionally perceive physical
characteristics and surroundings when interacting with any part of the hotel (Bitner, 1992;
Stein & Ramaseshan, 2016; Walls, 2013). These characteristics comprise sensory factors
(e.g. noise, indoor temperature, lighting, music) and visual aspects (e.g. interior and
exterior designs, colour combination, layout and design, decoration variables).
Customers who engage in these kinds of experiences are considered passive participants,
because they enjoy being in the environment without influencing or altering the environ-
ment presented to them (Oh et al., 2007).
Staff-customer interaction refers to the superiority of direct and indirect interaction
between staff and customers (e.g. Ali et al., 2016), and is considered to be at the heart of
most service experiences (Ren et al., 2016; Walls, 2013), because of the inseparability of the
service from employees (Ryu & Han, 2010). It is “a sense of genuine interpersonal
sensitivity and concern” (Ashforth & Humphrey, 1993, p. 96). Staff-customer interactions
occur through various channels (e.g. face-to-face, telephone, social media, emails, online
forums) and different stages of a customer journey (Stein & Ramaseshan, 2016), requiring
employees to display good interaction skills (e.g. being polite, friendly, trustworthy and
helpful) across all these channels and stages in order to deliver a high quality experience to
customers (Kim & Choi, 2013).
8 I. ALNAWAS AND J. HEMSLEY-BROWN

Customer-customer interaction refers to the perceived judgement of the superiority of


customers’ interactions between each other (Lemke et al., 2011). A number of authors
indicate that deviant and aberrant customer behaviour (Moschis & Cox, 1989) – standing
close to others (Bateson and Hui, 1986), shouting loudly and interrupting a conversation
with service providers (Chang and Horng, 2010) – may ruin the experience of customers.
On the other hand, customers’ helping behaviour (McGrath & Otnes, 1995), customers
valuing the privacy of other customers, customers displaying proper behaviour towards
other customers (Walls, 2013) and knowledgeable customers (Wu, 2007), positively
influence the experience of other customers.
Guest security is concerned with preserving guests’ possessions and property (Enz,
2009). It represents one important part of the overall servicescape, assists in defining the
service experience (Hilliard & Baloglu, 2008), and strongly influences hotel selection
(PATA, 2015). Creating a favourable hotel environment requires a comprehensive under-
standing of how potential hotel visitors experience their environment in terms of security
and safety (Bhat, 2014). Hotel visitors are more likely to accept stringent security measures
and are more willing to pay for them (Feickert, Verma, Plaschka, & Dev, 2006).
Learning refers to the knowledge customers obtain from becoming involved in the
service process (Fernandes & Cruz, 2016). This kind of experience engages the mind (for
intellectual education) and/or the body (for physical training) of the customer, and
appeals to their desire to learn something new (Oh et al., 2007). It is, thus, viewed as
active participation, where customers play a major role in their subsequent experience
(Hosany & Witham, 2010). Some of the educational experiences that enhance customer
knowledge and skills in a hotel setting are, for example: educating customers in how to
fully benefit from the various services the hotel offers; taking customers on trips to
experience local culture and historical places; conducting shows and/or offering programs
inside the hotel to educate customers about the culture of the country; or offering
programs to educate customers on how they can enjoy their time outside the hotel.
Surprise refers to the experience of surprise as “lots of little surprises” (Hemmington,
2007, p. 752), a “chain of sparkling moments” (Moir, 2005, p. 20); offering a number of
unexpected benefits (Torres & Kline, 2006); and “having one’s expectations exceeded to
a surprising degree” (Rust & Oliver, 2000, p. 87). Some hotels surprise guests through the
physical environment particularly when: the internal design, architecture and setting are
rarely seen elsewhere; and the decoration is designed with care and imagination that
customers rarely see (e.g. Chang and Horng, 2010). Other hotels offer happy surprises at
the checkout. For example, Napa River Inn surprises guests at the checkout by offering
them an unexpected discounted return-guest rate and a bottle of wine; while Paradise
Beach Resort offers guests a pair of Havaianas flip-flops customised to their foot size and
at checkout they tell them that “they’re yours to keep” (Elliott, 2016). Other hotels surprise
guests when checking in by using guests’ personal data and mining guests’ personal data
on social networking in order to offer them little personal touches in their rooms. For
example, some hotels offer a framed picture of guests, entirely made of chocolate, on the
coffee table (Frequent Traveler, 2014)
Escapism/immersion refers to very highly intensified experiences (Lindberg and
Ostergaard, 2015); deep involvement in the present moment (Hansen and Mossberg, 2013);
oneness with surroundings (Schouten, McAlexander, & Koenig, 2007); losing track of time
(Chang and Horng, 2010); and extreme focus of attention (Csíkszentmihályi, 1990). These
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 9

kinds of experiences require greater effort and participation from the customer than entertain-
ment and educational experiences (Hosany & Witham, 2010). In tourism experiences custo-
mers escape from their daily routine to enjoy and entertain themselves (Walls et al., 2011c),
get away from the norms and values that govern their lives (Turner, 1973) and search for
a meaningful life (Cohen, 1979). When customers immerse themselves in and focus on the
hotel’s physical surroundings or become highly involved in the hotel’s services, they may
isolate themselves from reality and forget the passing of time (e.g. Chang and Horng, 2010).
Fun/entertainment refers to customers’ happiness, pleasure, fantasy and enjoyment during
the consumption process (Holbrook, 1996; Jin et al., 2015). Entertainment implies that physical
surroundings and a hotel’s services catch and occupy customers’ attention and readiness. It
occurs when a customer passively observes activities without affecting the experiential outcome.
Some of the entertainment programs could be, for example, advanced in-room technology, hotel
animation (e.g. cultural display of different countries), a trip to cultural events (e.g. carnivals,
festivals or dance displays) or sporting events.
Lifestyle refers to the extent to which a hotel is capable of supporting the customer’s
lifestyle and supporting the customer to express their values and lifestyles within the hotel
and in his/her social environment (Nam, Ekinci, & Whyatt, 2011, p. 1014). Solomon
(2002) notes that customer-brand identification occurs when the focal brand embodies
values and aspirations that match customers’ desired lifestyles (Solomon, 2002). Lifestyle
experience also involves design-led, stimulating and personalised products and services;
developing experiences that respond to the ever changing and evolving needs; offering
more services that are ancillary; stimulating a diverse and innovative environment
enhanced by a sense of belonging and style; and creating a trendy yet exclusive entourage
(Fawaz, 2015).
Based on the above reviewed literature, the following hypothesis is formulated:

H1: CEQ is a high-order reflective construct that is comprised of nine first-order


indicators.

The effect of CEQ on customer satisfaction, perceived value and brand loyalty
In order to argue that the proposed construct of CEQ is a valid construct, it must correlate with
certain indicators and concepts, i.e. criterion validity needs to be established. Nunnally (1978)
explains that the purpose of criterion validity is to show how well the measures of interest
correlate with a meaningful outcome. This kind of validity also assumes that the criterion used is
a variable already known to correlate with the construct measured. Therefore, the new proposed
construct of CEQ will be investigated in relation to customer satisfaction, perceived value and
brand loyalty, as explained in the following subsections.

Ceq→customer satisfaction
It is worth noting that when examining the experience-satisfaction relationship in the hospitality
industry, some of the previous studies measured customer satisfaction with the experiences
presented to them by the service brand, i.e. experiential satisfaction (e.g. Kao et al., 2008), while
others measured customer satisfaction with the service brand (e.g. Ali et al., 2016). Given the
fierce competition that hotels face and the increasing rate of declining customer loyalty, as
10 I. ALNAWAS AND J. HEMSLEY-BROWN

explained previously, this research will measure customer satisfaction with regard to the hotel
brand, rather than with the experiences themselves. To define customer satisfaction, the current
study adopts the confirmation/disconfirmation-paradigm (Oliver, 1980). The comparison
between customers’ experiences received from a hotel brand and their prior expectations
would lead to a positive or negative disconfirmation. If the resulting evaluation is a positive
disconfirmation, customers would become satisfied with the hotel brand; however, if the
resulting evaluation is a negative disconfirmation, customers would become dissatisfied with
the hotel brand (e.g. Oliver, 1980).
From this perspective, customer satisfaction with hotel brand is a function of pre-visit
expectations and post-visit experiences (Chen & Chen, 2010), and is defined as customers’
cumulative evaluation of the hotel brand against expectations and represents a constant satisfac-
tion to visit it (Nyffenegger, Krohmer, Hoyer, & Malar, 2015). In the hospitality industry, Ali,
Kim, Li, and Jeon (2018), for example, found that ambient elements of the physical environment
in a theme park were key antecedents of tourists’ satisfaction. High quality interpersonal
interaction among conference attendees (i.e. customer-to-customer interactions) also contrib-
uted greatly to attendees’ satisfaction (Wei et al., 2017). Similarly, emotional perceptions of
pleasure and arousal acted as significant predictors of tourists’ satisfaction in the context of water
parks (Jin et al., 2015). Low quality staff–customer interactions can have a detrimental effect on
the experience, causing customers to negatively assess their overall experiences (Stein &
Ramaseshan, 2016). Building on insights from these studies, it is reasonable to assume that
hotels’ services, which offer experiential opportunities to consumers to engage in distinctive and
extraordinary experiences arising from interacting with other customers, employees and the
physical environment, coupled with the psychological, symbolic and cognitive benefits obtained
from receiving the experience, would make customers highly satisfied with the hotel brand.
Therefore, the following hypothesis is proposed:

H2: CEQ is positively associated with customer satisfaction

Ceq→perceived value
While customer satisfaction occurs only after receiving the experience, perceived value is
immediately considered by the customer and takes place throughout different moments,
including those before receiving the experience (Sweeney and Soutar, 2001). The current
research adopts Zeithaml’s (1988, p. 14) definition of perceived value, which involves “the
customer’s overall assessment of the utility of a product or service based on perceptions of
what is received and what is given”. Thus, perceived value is a cognitive judgement of the
trade-off between benefits and sacrifices, i.e. perceived costs (Carlson, Rahman,
Rosenberger, & Holzmüller, 2016). In the retail sector, contextual experience (i.e. the
extent of how well the contextual atmosphere can be impressed and memorised after the
service encounter) was found to be an important antecedent of perceived value (Yu &
Fang, 2009). A similar conclusion was reached in the hospitality industry. For example,
Babin, Lee, Kim and Griffin (2005) concluded that emotions experienced by customers as
a result of the restaurant environment exerted a positive impact on customers’ perceived
value. In the context of bed and breakfast lodging, stronger senses of customer experience
were found to generate a higher level of perception of customer value (Chen, 2015).
Pleasant and enjoyable experiences resulting from a wide range of facilities and programs
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 11

in a water park made customers perceive their consumption of the water park’s experi-
ences as highly valuable in relation to their investment (Jin et al., 2015). Positive percep-
tions of the physical aspects of the hotel contributed significantly to guest perceptions of
value associated with their stay at the hotel (Worsfold, Fisher, McPhail, Francis, &
Thomas, 2016). Attractiveness/caring, professionalism and reliability of a hotel’s employ-
ees coupled with guest-to-guest interaction, made guests perceive the benefits of their
hotel’s stay experience as higher than the costs of the experience (Walls, 2013). In event
tourism (Carlson et al., 2016) and heritage tourism (Chen & Chen, 2010), high experience
quality was reported as a key determinant of customer perceived value. Using insights
from these studies, it is reasonable to suggest that emotions and sensations created by
hotels’ experiences and knowledge acquired from specific encounters, coupled with phy-
sical environment interaction, staff interaction and peer interaction, would make custo-
mers highly value their consumption of the hotel’s experiences when compared with their
investment. Therefore, the following is hypothesised:

H3: CEQ is positively associated with perceived value

Ceq→brand loyalty
Current conceptualisations of brand loyalty can be categorised into the behavioural
approach (i.e. customers’ behavioural consistency with regard to the focal brand), the
attitudinal approach (i.e. customers’ attitudinal predisposition towards the focal brand), or
a combination of both approaches (Li and Petrick, 2010). The behavioural approach is
usually understood in terms of repeat purchase, purchase frequency and brand retention,
while the attitudinal approach addresses consumer’s psychological commitment towards
the focal brand (Reinartz and Kumar, 2000; Chaudhuri & Holbrook, 2001). As prior
research tends to include both attitudinal and behavioural aspects when measuring brand
loyalty (e.g. Hemsley-Brown & Alnawas, 2016), the current study will adopt Chaudhuri
and Holbrook’s (2001, p. 82) definition of brand loyalty, which captures both aspects: “a
deeply held commitment to re-buy or re-patronize a preferred product or service con-
sistently in the future, thereby causing repetitive same-brand set purchasing, despite
situational influences’ and marketing efforts’ having the potential to cause switching
behaviour”.
In the context of restaurants, sensory experience (e.g. sight, touch, listen), coupled with
intellectual, behavioural and emotional interaction with the brand contributed signifi-
cantly to willingness to pay premium price, positive word-of-mouth and repurchase
intention (Ong, Lee, & Ramayah, 2018). In the cafe industry, coffee quality and staff-
customer interaction generated higher levels of revisiting intentions and recommendation
intentions (Zhang, Kim, & Goodsir, 2019). Guests who developed a sense of friendship
and enjoyed their time with other customers extended their staying at the hotel (Goi,
Kalidas and Zeeshan, 2014), displayed higher levels of loyalty and engaged in positive
word-of-mouth (Fakharyan, Omidvar, Khodadadian, Jalilvand, & Vosta, 2014). Guests
who experienced high quality physical and relational aspects of their experiences were
more likely to develop positive emotions and to generate positive behavioural outcomes
(Walls et al., 2011b). Building on the results of these studies, it is reasonable to suggest
CEQ which manifests itself via interacting with physical and social environments, coupled
12 I. ALNAWAS AND J. HEMSLEY-BROWN

with psychological, symbolic and cognitive outcomes accorded to customers from con-
sumption activities, would enhance brand loyalty in the hotel industry. Therefore, the
following hypothesis is suggested:

H3: CEQ is positively associated with brand loyalty

Figure 1 summarises the study’s constructs and relationships

Methodology
The proposed model was examined using a quantitative approach. Following prior
research on CEQ in service industries in general (e.g. Chang and Horng, 2010; Kim &
Choi, 2013) and the tourism industry in particular (e.g. Ali et al., 2016; Chang & Lin,
2015), a cross-sectional design was used to assess guests’ perceptions concerning the
experiences offered by their preferred hotel.

Item generation
No existing scales are used to measure the majority of experiences, but rather, items are
adapted from different existing scales because some scales in existing research measure the
same experience by focusing on different issues (see, for example, Jin et al. (2015, p. 88)
and Kao et al. (2008, p. 169). Therefore, in order to develop a comprehensive scale of CEQ
that captures the different aspects of each experience different studies were used (see Table
3). Some items were utilised with the original wording, while others were reworded to fit
the context of the study. For example, these items: “This is a store where people can enjoy
themselves” (Chang and Horng, 2010: 2419) and “It is happy time when I visit this wine
cellar” (Fernandes & Cruz, 2016, p. 376) were reworded as follows: “XYZ is a place where
people can enjoy themselves” and “It is happy time when I visit XYZ”. For brevity, only
items that appear to best-measure each experience are reported along with their sources
(see Table 4). The final structured questionnaire consists of 68 items: 11 items to measure
satisfaction, perceived value and loyalty and 57 items to assess the nine experiences.
A five-point Likert scale (strongly disagree-strongly agree) was employed to measure all
the constructs.

Data collection
An online panel based in the UK was used to collect the survey data. A specialist market
research company (CINT UK) was hired to access that panel. The respondents were asked
to complete the questionnaire based on a hotel brand they had used within the last three
years. The respondents cited a range of different hotel brands. 420 questionnaires were
originally collected, with 392 out of that number appropriate for the analysis. The hotels
identified by the respondents were rated as follows: five stars (n = 72); four stars (n = 149);
three stars (n = 86); two stars (n = 18); one star (n = 27); and not specified (n = 53). The
sample consists of: 48% male and 52% female; 9% within the age range of 18–25 years;
22.7% within the range of 26–35 years; 16.6% within the range of 36–45 years; 24.2%
within the range of 46–55 years; and 27.5% above 55 years of age. 27% of the participants
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 13

First-Order indicators Second-Order Construct Outcomes

Emotional –related
experiences
Customer
Satisfaction
Staff-Customer
Interaction

Customer-Customer
Interaction

Customer Experience Perceived Value


Lifestyle Quality

Learning

Atmospheric

Guest Security Brand Loyalty

Figure 1. The proposed model.

had a high school degree; 50.6% had a college degree; 19.4% had a master’s degree; and
11% had a doctorate degree. 29% of participants visited the hotel they identified once and
71% visited their nominated hotel more than once. 82% of participants visited hotels for
leisure; 6% visited hotels for business; and 12% visited hotels for leisure and business. 39%
of the participants had an annual income of less than £25,000; 25.9% had an annual
income between £25,000 and £35,000; 15.4% had an annual income between £35,001 and
£45,000; 6.2% had an annual income between £45,001 and £55.000; and 13.3% had an
annual income of more than £55,000.

Measurements validation
An exploratory factorial analysis (EFA) was first conducted to assess the structure of the
nine factors. The analysis resulted in deleting 24 items due to low factorability or cross-
loadings. However, the remaining items were loaded on seven factors only. More speci-
fically, the items measuring fun/entertainment, surprise and escapism/immersion were
loaded on the same factor. Based on the results of the factorial analysis, the above three
factors, which were loaded on the same factor, were labelled as “Emotional-related
experiences”, since they all measure emotional-related issues. The 33 items of the seven
factors were loaded significantly on their respective factors (see Table 2). The first factor
(emotional-related experiences) has a relatively higher eigenvalue of 12.11 with variance
explained of 30.0%. Nonetheless, these preliminary findings which indicate that the seven
first-order indicators are a good representative of CEQ, suggest that H1 will be rejected.
AMOS (18.0) was then employed to conduct a confirmatory factor analysis (CFA).
Table 3 shows all the scales have reliability above 0.70 and all indicators were significant at
0.001. Table 3 also shows the average variance extracted (AVE) for all the scales is above
14 I. ALNAWAS AND J. HEMSLEY-BROWN

Table 2. Factorial analysis of the dimensions of CEQ.


Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .911
Bartlett’s Test of Sphericity 7138.238
Sig. .000
1 2 3 4 5 6 7
EMOTION1 .769
EMOTION2 .672
EMOTION3 .656
EMOTION4 .798
EMOTION5 .774
EMOTION6 .766
EMOTION7 .707
EMOTION8 .772
EMOTION9 .706
LIFESTYLE1 .812
LIFESTYLE2 .802
LIFESTYLE3 .744
LEARNING1 .671
LEARNING2 .744
LEARNING3 .725
LEARNING4 .737
S-CI1 .786
S-CI2 .796
S-CI3 .808
S-CI4 .790
C-CI1 .779
C-CI2 .771
C-CI3 .725
C-CI4 .641
GS1 .777
GS2 .784
GS3 .766
ATM1 .690
ATM2 .717
ATM3 .683
ATM4 .704
ATM5 .662
ATM6 .656
Eigen Value 14.11 4.30 2.42 2.03 1.58 1.38
Variance 36.57 10.46 6.91 5.82 4.51 3.95
S-CI = Staff-customer interaction; C-CI = Customer-customer interaction; GS = Guest security; ATM = Atmospherics

the cut-off-point of 0.50, indicating strong evidence of convergent validity. Additionally,


discriminant validity was established using the following recommendation of Fornell and
Larcker (1981). The results reported in Table 4 reveal that the squared root of AVE for
each construct is higher than the correlations with other constructs.

Common method bias


First, we followed a standard survey design and administration practices, i.e. three experts
pretesting the research instruments, promising respondents confidentiality and anonymity,
assuring them that there were no correct or incorrect responses, separating the measurement
of the predictor and criterion variables, and interspersing all the items of the
constructs. Second, we followed the work of Spralls, Hunt, and Wilcox (2011) and used
Harman’s single factor test (Harman, 1967). The results revealed the first factor of all items in
Table 3. Scales sources, reliabilities and AVE.
Regression Cronbach Composite Means
Variable Items Sources Weights Alpha Reliability AVE Scores
Atmospherics XYZ noise level is pleasant throughout the hotel Walls (2013) .737 0.86 0.87 0.54 3.95
The indoor temperature of XYZ is comfortable .679
The design of XYZ incorporates the surrounding natural .730
resources
The colors within XYZ are complementary and Wu and Liang (2009) .717
coordinating
XYZ environment is clean. .817
The materials used in XYZ facilities are of high quality Walls (2013) .690
Emotional-related XYZ offers some happy surprises when checking at room Hemmington (2007) .822 0.92 0.92 0.58 3.14
experiences XYZ offers some sparkling moments .735
The entertainment at XYZ was captivating Jin et al. (2015) .761
When I visit XYZ I escape completely from reality Oh et al. (2007) .825
I had fun while visiting XYZ Hosany and Witham (2010) .775
XYZ is a place where people can enjoy themselves Fernandes and Cruz (2016); Chang and .769
It is happy time when I visit XYZ Horng (2015) .686
Visiting XYZ helps me get away from stress of daily life Hosany and Gilbert (2010) .732
When I visit XYZ I forget that time is passing Jin et al. (2015) .709
Customer-Customer Other customers are not loud Ali et al. (2016) .796 0.85 0.86 0.60 3.86
Interaction Other customers behave nicely .797
Hotels customers value the privacy of other customer Walls (2013) .765
Other customers are of an appropriate socio-economic .731
level
Learning/education I have learned a lot after visiting XYZ Oh et al. (2007) .732 0.81 0.83 0.54 3.65
The experience made me more knowledgeable .704
XYZ stimulated my curiosity to learn new things .754
It was a real learning experience .759
Staff-Customer Employees of XYZ treat customers with respect Walls (2013); Chang and Horng (2015) .806 0.92 0.92 0.73 4.10
Interaction Employees of XYZ are always willing to help you .844
Employees of XYZ conduct themselves in a professional .883
manner
Employees of XYZ provide a thorough and satisfactory Ali et al. (2016) .883
service
Guest Security Employees make you feel safe during your hotel stay Walls (2013) .848 0.87 0.87 0.70 3.66
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT

XYZ has stringent security measures Feickert et al. (2006) .792


Guest security/safety is of high priority of XYZ .857
(Continued )
15
16

Table 3. (Continued).
Regression Cronbach Composite Means
Variable Items Sources Weights Alpha Reliability AVE Scores
Lifestyle XYZ reflects certain experience of my life Su et al. (2011) .793 0.81 0.82 0.59 3.52
XYZ is totally in line with my lifestyle Nam et al. (2011) .779
Staying in this hotel brand supports my lifestyle .735
Dependent Variables
Satisfaction I am consistently satisfied with my decision to use XYZ Aaker, Fournier, and Brasel (2004) 0.86 0.90 0.90 0.76
I. ALNAWAS AND J. HEMSLEY-BROWN

I am completely satisfied with XYZ 0.90


XYZ offers exactly what I expect 0.85
Loyalty I will continue to choose this hotel brand before other Harris and Goode (2004); Chaudhuri and 0.84 0.89 0.90 0.67
brands Holbrook (2001)
I am willing ‘to go the extra mile’ to choose this hotel 0.79
brand
Next time I am looking for somewhere to say, I will stay 0.78
with this hotel brand
I am very committed to this hotel brand 0.87
Perceived Value When I use this hotel, I feel I am getting my money’s Dodds et al. (1991) 0.79 0.87 0.87 0.62
worth
Compared with other hotel brands, this hotel is good 0.80
value for money
All things considered (price, time, and effort), this hotel 0.71
is a good buy
What I get from this hotel is worth the costs 0.85
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 17

Table 4. Discriminant validity.


ATM C-CI S-CI LEARNING LIFESTYLE SECURITY EMOTIONAL
ATM 0.73
C-CI 0.66 0.77
S-CI 0.57 0.69 0.85
LEARNING 0.55 0.43 0.41 0.73
LIFESTYLE 0.52 0.43 0.46 0.62 0.77
SECURITY 0.52 0.28 0.52 0.40 0.32 0.84
EMOTIONAL 0.45 0.64 0.46 0.57 0.65 0.50 0.76
ATM: Atmospheric; C-CI: Customer-customer interaction; S-CI: Staff-customer interaction; LEARN: Learning; EMOTIONAL:
Emotional-relational experiences; SECURITY = Guest Security

the measurement model explained 37% of the variance, which is below the threshold of 50%,
indicating a lack of evidence for common method bias.

Reflective vs. formative measurements


The use of reflective-measurement models or formative-measurement models has been the
subject of much debate between researchers (see Edwards, 2011; Hardin, Chang, Fuller, &
Torkzadeh, 2011; Iacobucci, 2010). In this particular vein, Hardin and Marcoulides (2011,
p. 753) point out that the use of formative measurement should be suspended. Similarly,
Edwards (2011, p. 370–371) concludes that models with reflective measures serve the
purposes of formative measurement models while they avoid their drawbacks. Following
the recommendations of leading researchers in this area, the proposed model for this
research will be validated using reflective measurements.

Model validation
It is mentioned above that the factorial analysis yielded a model of seven factors only.
Thus, against H1, CEQ will be validated as a second-order construct that is comprised of
seven first-order variables, rather than nine first-order variables. AMOS (18.0) was used to
serve this purpose. The fit of this new conceptualisation was relatively high: CMIN/DF
(1.83), RMSEA (0.05), IFI (0.98), TLI (0.97) and CFI (0.98). Additionally, the relative
importance (i.e. regression weight) of the seven experiences was as follows: atmospheric
(0.83), emotional-related experiences (0.77), employee-customer interaction (0.77), custo-
mer-customer interaction (0.72), guest security (0.69), learning (0.61) and lifestyle (0.55).

Model testing
To test the study’s hypotheses, AMOS (18.0) was also used. H1, which suggests that CEQ
is a high order construct that is comprised of nine first-order variables, is rejected. This is
because the factorial analysis and the CFA both show that CEQ is a high-order construct
that is comprised of seven first-order variables. To test H2-4, CEQ was specified as
a second-order construct that consists of seven first-order indicators, and it was linked
with the three dependent variables (i.e. satisfaction, perceived value and loyalty), as shown
in Figure 1. This conceptualisation provided an acceptable fit: CMIN/DF (2.29), RMSEA
(0.06), IFI (0.93), TLI (0.92) and CFI (0.93). Table 5 shows that CEQ has a significant
18 I. ALNAWAS AND J. HEMSLEY-BROWN

Table 5. Hypotheses testing.


Hypotheses Regression weight Significance level R Decision
H2: CEQ→customer satisfaction 0.78 p < 0.001 0.69 Accepted
H3: CEQ→perceived value 0.70 p < 0.001 0.66 Accepted
H4: CEQ→brand loyalty 0.55 p < 0.001 0.43 Accepted

positive effect on customer satisfaction (β = 0.78, p < 0.001), thus confirming H2.
Additionally, the variance in customer satisfaction that is explained by CEQ is substantial
(R2 = 0.69), providing further evidence on the predictive power of CEQ. The Table also
shows that CEQ has a significant positive effect on perceived value (β = 0.70, p < 0.001),
thus supporting H3. Further, the explanatory power of CEQ in relation to perceived value
is substantial (R2 = 0.66). Concerning H4, which indicates that CEQ is positively asso-
ciated with brand loyalty, the findings reported in Table 5 confirm this relationship
(β = 0.55, p < 0.001). The variance in customer satisfaction that is explained by CEQ is
relatively high (R2 = 0.43). When taking the predictive and explanatory power of CEQ in
relation to the three dependent variables, further support can be added to the inclusion of
the seven experiences into a broader conceptualisation of CEQ.

Discussion and conclusions


The purpose of the current study was to conceptualise CEQ in the hotel industry and to
examine its effect on customer satisfaction, perceived value and brand loyalty in order to
establish nomological validity of the concept. This resulted in proposing four hypotheses;
one is related to conceptualising and measuring CEQ, and the other three are related to
testing the impact of CEQ on the above three outcomes. With regard to H1, it was originally
hypothesised that CEQ consists of nine first-order variables: fun/entertainment; immersion/
escapism; surprise; atmospherics; staff-customer interaction; customer-customer interaction;
learning; lifestyle and guest security. However, the first three experiences loaded on the same
factor and they were relabelled as “emotional-related experiences”. This resulted in rejecting
H1 and led CEQ to be conceptualised as a second-order construct that consists of seven
experiences, rather than nine. Concerning the seven experiences of CEQ, their relatively
high regression weights indicate that both psychological, symbolic and cognitive outcomes,
on the one hand, and interaction with physical and social environments, on the other hand,
are equally important. With regard to those outcomes accorded to customers, it is noted by
Walls et al. (2011b) who cite Cohen (1979), that tourism is experiencing change, and
a temporary reversal of daily routines (i.e. no-work, no-care, no-thrift), which includes
effective means of escape from everyday activities, religious feelings, the opportunity to build
relationships at a personal level, and a source of personal development. Thus, when
a customer visits a hotel, he/she may look for the kinds of things referred to in the research
model as psychological, symbolic and cognitive outcomes.
Additionally, prior research makes an implicit reference to lifestyle, which reflects
a symbolic outcome as a potential experience of CEQ (Chen, 2015; Su, 2011). However,
for the first time this research makes explicit reference to lifestyle and shows it is one
of the key determinants of CEQ. The inclusion of lifestyle, as a part of CEQ, is in line
with prior research which concludes that consumers feel highly satisfied, develop
repeat purchasing behaviours, and form personal attachments, when consumption
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 19

activities are associated with a particular lifestyle and reflect customers’ desired life-
styles (Nam et al., 2011; Solomon, 2002). With regard to the interaction with physical
and social environments, hotel services have been compared with theatre performances
where actors (i.e. employees) deliver services to the audience (i.e. hotel guests) in
a setting (i.e. the physical environment) (Ali et al., 2016; Hemmington, 2007). The
interaction between these three elements (i.e. actors, audience and setting) embodies
the overall experience of customers. This view is also echoed in the servicescape
concept where Bitner (1992) encourages business to view environmental dimensions,
and staff and customer behaviours in a way that results in forming an attachment,
spending of money, and extending stays. With regard to guest security, which is the
final dimension of CEQ, the results indicate that hotel guests give high importance to
it. Security as an experience, as noted by Hemmington (2007, p. 753), is severely
overlooked and insufficiently recognised by a very large number of hotels. Guests see
the hotel as an important sanctuary because they are usually in unfamiliar and alien
environments (Poon and Low, 2005), indicating that their personal and financial
security is far more important than the hotel security’s resources and procedures
(Hemmington, 2007).
However, as far as H2 is concerned, prior research in the context of theme parks (e.g.
Ali et al., 2016), wine tourism (e.g. Fernandes & Cruz, 2016), zoos (e.g. Cole & Scott,
2004), and cruise vacation (e.g. Hosany & Witham, 2010), found that CEQ is a vital
antecedent of customer satisfaction. This relationship is also confirmed in the context of
hotels, where the results indicate that CEQ contributes greatly to shaping customer
satisfaction. The key difference, however, is that the current study has provided a more
complete picture on the drivers of customer satisfaction in the hotel industry, as evident
by the predictive power (α = 0.78) and the explanatory power of CEQ in relation to
customer satisfaction (R2 = 0.69). Thus, unlike previous studies, which focused on emo-
tional, symbolic and cognitive experiences (e.g. Kao et al., 2008) or customer interaction
with physical and social environments (e.g. Ali et al., 2018), this study shows that the
experiences of both perspectives are fundamental to the enhancement of customer
satisfaction.
With regard to the effect of CEQ on perceived value in the hotel industry (i.e. H3), the
findings are also in line with previous studies conducted on water parks (e.g. Jin et al.,
2015), event tourism (e.g. Carlson et al., 2016) and bed and breakfast lodging (e.g. Chen,
2015). Specifically, the current research shows that the seven experiences of CEQ lead
customers to perceive their consumption of hotel experiences as highly valuable when
compared with what they pay. This is evident by the predictive (β = 0.70) and explanatory
power of CEQ in relation to perceived value (R2 = 0.66). Concerning H4, prior research in
the hospitality industry tends to position customer satisfaction and/or perceived value as
mediators between customer experience and brand loyalty (e.g. Ali et al., 2018; Cole &
Scott, 2004; Jin et al., 2015; Kao et al., 2008; Yu & Fang, 2009), with no direct link between
customer experience and brand loyalty. This study, however, established a direct link
between CEQ and brand loyalty and showed that CEQ can contribute significantly to
improving brand loyalty in the hotel industry. This relationship had been further explored
through testing a partial mediation model to get further insights on whether the CEQ-
brand loyalty relationship is direct or indirect as proposed by the vast majority of previous
research. In the partial mediation model, a direct link between CEQ and brand loyalty was
20 I. ALNAWAS AND J. HEMSLEY-BROWN

specified coupled with two links that go from CEQ to brand loyalty via customer
satisfaction and perceived value. The findings showed that the link between CEQ and
brand loyalty remained significant (α = 0.38, p < 0.01), after the inclusion of customer
satisfaction and perceived value. The evidence offered by the current study on the direct
link between CEQ and brand loyalty is in line with Maklan and Klaus’s (2011) study in the
banking industry, where the authors found that CEQ predicted loyalty better than
satisfaction predicted loyalty.

Theoretical contribution
The current research makes four theoretical contributions to the hospitality literature in
general, and the hotel literature in particular. First, when conceptualising CEQ, prior
research tends to either focus on customer interaction with physical and social environ-
ments or the psychological, symbolic and cognitive outcomes of experiences. Despite the
valuable contributions of prior research in this area, it has not resulted in developing an
integrated model that combines these major perspectives into a broader conceptualisation
of CEQ. This research, therefore, contributes to this stream of literature through synthe-
sising and integrating these perspectives thus providing a more balanced, detailed and
comprehensive understanding of CEQ. It shows that customers do not perceive their hotel
experiences based only on interacting with physical and social environments – or the
psychological, symbolic and cognitive outcomes of experiences – but based on
a combination of them all. Additionally, the suggested CEQ model reinforces the existence
of some dimensions (i.e. emotional-related experiences, staff interaction, customer inter-
action, atmospherics and learning), which were proposed in prior research, and also
provides support for the existence of other key dimensions of CEQ (i.e. lifestyle and
guest security). Therefore, such a model is a significant new benchmark to the growing
body of literature on customer experiences in the hospitality industry. Second, the current
study contributes to the extant literature through proposing and confirming
a measurement instrument of CEQ in the hotel industry, comprised of 33 items, which
shows desirable properties regarding reliability and validity. The seven first-order indica-
tors of CEQ demonstrate the construct validity, are closely related and exhibit a strong
convergence towards the overall construct of CEQ. This indicates that each of the seven
experiences is appropriately conceived as a determinant of CEQ.
Third, the current research offers a more detailed understanding of the key sources of
customer satisfaction and perceived value, from an experiential perspective, through
confirming the contribution of different types of experiences to these two post-
consumption outcomes. This integrative and expansive view, which covers different facets
of the hotel experience, is reflected in the power of CEQ in explaining 69% of the variance
in customer satisfaction and 66% of that in perceived value. This study, therefore, adds to
customer experience in the hospitality literature by enriching our understanding of how
CEQ contributes to customer satisfaction and perceived value. That is, developing experi-
ences that reflect customers’ lifestyle, intensify their emotions, motivate their thinking,
safeguard their personal and financial possessions, and promote high quality interactions
with other customers, employees and the physical environment, contribute greatly in
shaping customer satisfaction and making them perceive their hotels’ experiences as
valuable compared to their investment. Additionally, the current study adds to prior
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 21

research which focused on experiential satisfaction (e.g. Wu & Cheng, 2017; Kao et al.,
2008; Bigne, Sanchez, & Sanchez, 2001), through showing that CEQ can also improve
customer satisfaction with the hotel brand, i.e. enhancing customers’ cumulative evalua-
tion of the hotel brand and generating a constant satisfaction to visit it. Fourth, this study
offers additional insight on the CEQ-brand loyalty relationship through showing that CEQ
can contribute significantly and directly to improving brand loyalty in the hotel industry.
This insight indicates that when the measurements of CEQ captures various aspects of the
focal experience, they become strong predictors of brand loyalty, and in this case, CEQ
can drive brand loyalty directly.

Managerial implications
This research offers a number of managerial implications. First, the instrument that
measures the CEQ can be effectively used by hotel managers to monitor their level of
commitment in crafting and delivering distinctive and unique experiences. The scores for
the various CBBE elements will provide valuable information on the practices that need to
be improved in order to enrich consumers’ positive experience and increase their
loyalty. Second, when the seven experiences of the CEQ are seen as a whole, they appear
to have a greater significance and more positive effect on satisfaction, perceived value and
loyalty. This solidity suggests that the seven experiences must be simultaneously applied in
order to have the highest impact on the intended outcome. In other words, the seven
experiences of CEQ need to be embraced simultaneously as they are part of a holistic
philosophy. This can be achieved in several ways. For example, designing a hotel that
reflects the culture, the values, the soul and the people of the destination that the guest is
visiting could probably be more sensational and electrifying than getting exposed to the
same lobby, restaurants and rooms as in any hotel everywhere. A good example of this is
the Ace Hotel group, where its remarkable success comes from modulating each of its
locations by its surroundings, i.e. each location is designed and crafted to be of the city
and neighbourhood that it occupies. Similarly, hotels should not focus solely on promot-
ing themselves, their facilities and equipment and the services they provide, but rather,
they should focus on promoting the psychological, symbolic and cognitive benefits that
can be attained from visiting them. This requires appealing to customers’ status and
lifestyle, image-enhancement and self-actualisation, which all have the potential to address
and to trigger the inner desires of current and potential guests.
Further, as staff-customer interaction represents an important aspect of CEQ, hotels’
employees need to be viewed and trained as “content experts” and “consultant-employees”,
indicating the importance of possessing demanding and conceptual skills from every
employee that focus essentially on making the most out of each guest transaction
(Klumbis, 2003). The notion here is that every employee might be expected to be
a consultant of the hotel’s guests, and because of that, employees should not only have
knowledge about the hospitality enterprise in general, and the facilities/equipment within
the hotel in particular, but they should also have a strong awareness of the world outside the
hotel’s operations to make the perfect possible matches between the guest and the desired
experiences. This indicates that consultant/expert employees are not only expected to have
a substantial understanding of the business, but they are also expected to have skills and
knowledge to identify and understand the problems and needs of the hotel’s guests; and
22 I. ALNAWAS AND J. HEMSLEY-BROWN

once those needs are identified, the consultant/expert employee should search for solutions
to those problems beyond what the focal hotel offers.
Similarly, customer-to-customer interaction, which is an important element of CEQ,
requires hotel managers to be aware that while guests may have a large number of online
connections, their offline connections when they travel tend to be very weak, which makes
them feel that they are lonely during their stay (Terdiman, 2015). This shows the
importance of developing mechanisms and programs to socialise guests inside and outside
the hotel. Concerning the first issue, Marriott, for example, introduced in 2014 The RI
Mix, which is a series of after-work events that aim to offer guests an opportunity to
socialise and connect with the local community (www.marriott.com). Taking guests to
cultural, entertainment and sporting events could also feed into improving guest socialisa-
tion and would also improve the psychological and cognitive benefits of their experiences.
However, to socialise guests inside the hotels, public spaces within the hotel such as the
lobby could be a useful starting point. The hotel lobby, for example, should not be viewed
as a place to check-in and out, to collect room keys and to wait for taxis, but rather, it
should be viewed as a place where guests can socialise, relax and do joint activities. For
example, the Ann Arbor Sheraton uses the “Living room strategy” for its lobbies, which
involve using music, art, pillows and rugs to replicate the social spaces of one’s own house,
while the Houston Doubletree uses the “Great room concept”, which divides the lobby
into four spaces: a welcome zone, the bar, a relaxing work zone and a social business area
thus allowing the guest’s engagement in public-private spaces simultaneously (Hospitality
Design, 2017).

Limitations and direction for future research


First, the design of the current study does not allow researchers to confirm the
existence of specific emotional experiences. This is because an online survey method
was used in order to collect responses to measure the study’s constructs. This kind of
data collection had led respondents to report different types of hotels ranging from
budget hotels to two and three stars hotels, to upper upscale and luxury hotels. Such an
issue may have affected the structure of experiences from an analytical perspective,
since each type of hotel may stress different aspects of customer experience. Therefore,
future research could validate the proposed model in a single type of hotels (e.g. luxury
hotels) in order to further enrich understanding of CEQ and to provide additional
support on the structure of factors forming the construct of CEQ. Second, it is widely
acknowledged that upper upscale and luxury hotels are highly professional, have
complex configurations of hospitality services, and compete on creativity and innova-
tion more than on price and location (Ordanini and Magilo, 2009; Harris and Watkins,
1998). On the other hand, low-rated hotels tend to have a standardised “cookie-cutter”
appearance, offer no-frills accommodation with limited services and charge low prices
(Ren et al., 2016). Such differences between low and high-rated hotels indicate that the
relative importance and emphasis of the seven experiences proposed by the current
study may vary between them. For example, one would expect that emotional-related
experiences and lifestyle might be more suitable to luxury hotels than to low-rated
hotels. However, the issue does not seem to be straightforward, as one would expect.
For example, the CEO of Debut Hotel Group noted that: “Lifestyle should not just be
JOURNAL OF HOSPITALITY MARKETING & MANAGEMENT 23

for the upper Scale… every traveler should have a choice to stay at a non-homogenous,
neat feeling hotel that is focused on great design, relevancy of product, and great
service” (Global Allies, 2015, p. 96). Similarly, in a study conducted on budget hotels,
Ren et al. (2016, p. 15) noted that that “emotional aspects such as a pleasant stay,
comfort, and sense of security, are also important, in addition to the basic attributes of
the hotels”. This leads to the proposal of the following questions, which could be an
interesting area of research: how do the seven experiences vary between high and low-
rated hotels? Which of the seven experiences are more salient to high and low-rated
hotels? To what extent can psychological, emotional and symbolic experiences be
extended to low-rated hotels? What kind of emotional and psychological experiences
are offered by low-rated hotels? These questions could not be answered by the current
study given that the sample was heavily weighted towards upscale, upper upscale and
luxury hotels coupled with 53 respondents who did not specify the ratings of the hotels
they visited.

ORCID
Ibrahim Alnawas http://orcid.org/0000-0003-4563-8924
Jane Hemsley-Brown http://orcid.org/0000-0002-9483-8976

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